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© 2011 Intellecap. All rights reserved
www.intellecap.com
Catalyzing the New Mobility in Cities
30th March 2012
© 2011 Intellecap. All rights reserved
Agenda
2
Executive Summary
Context and Key Definitions
Current state of urban transport
Public Transport
Paratransit
Walking and Cycling
Issues for Entrepreneurs and service providers
Solutions to solve urban transport issues
Deep Dives
Delhi, India
Manila, The Philippines
Nairobi, Kenya
Annexures
© 2011 Intellecap. All rights reserved
0.35
1.16
0
0.4
0.8
1.2
1.6
Asia Africa
Cost of 10km trip using no-frill public
transport (USD PPP)1
Urban poor commuters mostly walk/cycle or use affordable public transport;
lack of affordable options and poor infrastructure makes commuting tough
 The poor resort to walking or cycling for short distance trips, though sometimes walk up to 10-20kms everyday in cities with poor transport options .
The modal shares of walking/cycling in the low income section is very high (It is in between 50-60% in cities with good public transport and in cities
with poor transport facilities it is over 90%)
− Poor infrastructure makes the environment not so conducive for the pedestrians and cyclists to use
− Majority of the fatal accidents involve non-motorised transport (NMT) users
3
Extreme poor (below poverty line) Low income
Travel Behavior in cities with no affordable
public transport modes
Irrespective of the affordability of public
transport, the majority of the poor who fall below
the poverty line walk or cycle to access goods
and employment opportunities. As they cannot
afford transportation they live in informal
settlements close to their employment
opportunities by compromising on proper
housing, sanitation etc.
In cities with no affordable public transport
modes the low income commuters either walk or
cycle and live in informal settlements
Travel behavior in cities with affordable public
transport modes
In cities with affordable public transport modes
some low income commuters use public
transport by staying in formal settlements far
away from their work place. Others live in
informal settlements and hence walk/cycle
 Long distance trips are generally done using public transport modes such as metro, buses,
ferries etc. In cities with effective public transport systems, the modal share of public transport
options is high even amongst low income commuters:
− The poor use no-frill or basic public transport services, not use luxury services such
as high speed AC metros, buses etc.
− The poor use buses more than the rail system because buses are more accessible
when compared to trains. The trip times in buses are much higher when compared to
that in trains because of congestion on roads
− No-frill or basic public transport modes are 3.3 times less expensive in Asia when
compared to Africa
3.3x
© 2011 Intellecap. All rights reserved
Paratransit modes are less affordable for the urban poor, but
generate livelihoods for 7-20% of families in major cities
 In cities where public transport infrastructure is weak long distance trips are done using primary paratransit modes such as Matatus,
Danfos, Jeepneys etc.
− Primary paratransit modes are 1.5 times more expensive than no-frill or basic public transport modes in both Asia and Africa
− Over speeding and crowding makes commuting in paratransit modes very unsafe. The high number of old vehicles being used as
paratransit has adverse effects on the environment (there are over 60,000 old (>30 years) Jeepneys that ply in the metro Manila
 Paratransit feeders are used for short distance commuting, generally modal shares of feeders in the low income sector is very low
− Feeders are not affordable across Asia and Africa. A 3km trip in a feeder costs more than what it costs for a 10km trip using public
transport modes across Asia and Africa2
4
 Paratransit operations generate livelihood opportunities for many,
although the sector is extremely unorganized
 Amongst the owners, drivers, support staff (such as conductors, etc.)
and other stakeholders involved, the drivers and the support staff
members are the most vulnerable
 There are three ownership structures possible, based on the relationship
between the driver and his owner. The driver can either work on a fixed
salary, take the vehicle on rent and make profit, or own the vehicle
 Drivers who own the vehicles earn the most and the drivers who operate
non-motorized modes (such as cycle rickshaws) are the most vulnerable
 Most drivers have long work days as they end up working for 14-18
hours in a day. This also leads to rash driving and over filling the vehicles
which makes commuting in paratransit modes an unsafe and unpleasant
experience
0.35
0.52
1.16
1.64
0
0.6
1.2
1.8
Public transport
(Asia- No-frill
services)
Primary
Paratransit
(Asia)
Public transport
(Africa- No-frill
services)
Primary
Paratransit
(Africa)
Cost for 10Km trip (USD PPP basis)3
1.5x
1.5x
© 2011 Intellecap. All rights reserved
Other key trends in funding, private sector activity & city plans
 Across Asia and Africa, transport jurisdiction and city management structures are fragmented
− This makes policy change and implementation tougher
− Very few cities have comprehensive city-level plans for urban transport
− Often, plans are designed for car users and very few cities have inclusive plans which cater to all commuters
 Rail Mass Rapid Transit (MRT) systems are attracting funding
− Cities tend to ignore more optimal solutions such as the Bus Rapid Transit (BRT) for more fancy and cost inefficient rail systems
 Green initiatives are increasingly popular, such as eco-friendly fuels.
− For example, the ADB is interested in funding a project to convert diesel paratransit vehicles in Manila into electric vehicles
 Limited attention to exclusive non-motorized transit (NMT) projects from both city managements and funders
− NMT projects are typically implemented along with large projects such as BRT; the World bank is especially interested in
promoting BRTs along with NMT lanes
 Paratransit remains largely informal; few private sector models exist which help organize the sector
− Current models empower the entrepreneur through technologies such as call centers or financial institutions which provide access
to finance services to the entrepreneurs
5
© 2011 Intellecap. All rights reserved
Potential pro-poor public transport solutions
 Constituting a unified body (an urban transport authority) to handle urban mobility issues in a city. With the city boundaries increasing
rapidly and the area moving beyond the boundaries of single local government it is import to have an authority to handle the entire
metropolitan area
 Creating a separate transport fund to help cross subsidize various services in transport; ex: parking fees can be used to subsidize
public transport fares or to increase the network
 Deploying Public Private Partnership (PPP) models whenever necessary to scale transport operations. When privatization is being
promoted it is important to promote limited competition. This can happen by keeping high barriers of entry such as high fleet size,
selection based on company that promises lowest fare etc.
 Promoting efficient public transport systems which are accessible, affordable and that reduce congestion :
– Create public transport for all; i.e. it is not only important to have affordable no-frill solutions for the poor but it is also important to
have luxury services for the more affluent in order to reduce congestion in cities and improve travel times for those using public
transport
– Develop rail based rapid transit systems for large cities such as Delhi and Manila which have the potential to attract lot of
commuters that use private vehicles. These modes currently do not attract the poor as they are relatively more expensive and are
not accessible as buses but would indirectly reduce the congestion on roads which would make commuting pleasant for bus users
– Implement „Right of way‟ for buses by building BRT corridors which drastically reduce the travel time for bus commuters and
improve efficiency; for the cost of building a kilometer of a metro line, over 12kms of BRT lines can be built
– Offer subsidies and innovative pricing mechanisms for sensitive groups. For example most transport services across India provide
subsidies for school going children, elderly citizens etc. Some governments also provide subsidies for the poor.
6
© 2011 Intellecap. All rights reserved
Paratransit solutions to improve commuter & driver experiences
 Regulate paratransit in cities with weak public transport:
– Enforce regulated fares across the city for all paratransit operators. If not regulated, operators over charge the commuters based
on demand. While regulating the fares the interests of the service providers (who are often poor) also must be kept in mind
– Promote the usage of high capacity vehicles, especially in high traffic roads
– Design comprehensive route plans based on traffic demand especially for primary modes in the city; multiple switches between
vehicles has been identified as an issue which makes commuting less affordable for the poor
– Implement robust safety and emission control mechanisms
 Organize the sector: Very few entrepreneurs have come up with solutions to organize the space there is still a huge need for
organizations that can streamline the operations by keeping the commuter and service provider needs in mind. Some examples include G
Auto, Fazilka, Go-Jek etc. which provide technological support (such as call centers) to paratansit operators or take care of other benefits
such as healthcare, education, etc.
 Provide access to finance services: As the drivers who own the vehicles earn the most perhaps providing access to finance for drivers
to buy their own vehicles can be a good solution to improve their earnings in a longer run. Currently such models are seen in non-
motorized modes which have very low capex and financial institutions typically do not require collateral to provide such loans. Rickshaw
bank in Guwahati, India is one such example which uses the group lending concept to give loans to cycle rickshaw drivers
 Use advertising as an alternate revenue source: This is a largely untapped opportunity. Given the right planning paratransit modes
can be used as an effective mode to publish local advertisements. This in turn can generate additional revenues to the driver. Currently in
most cities the advertising policies are not conducive for ads on paratransit or public transport modes
7
© 2011 Intellecap. All rights reserved
Potential pro-poor solutions to improve walking and cycling
8
 Build appropriate infrastructure
− Create dedicated infrastructure for walking, cycling and other non motorized transport to support poor commuters
− Allocate adequate budget based on infrastructure development/strengthening plan, aligned with policy commitments
− Move from “tiny” pilots to “substantial” ones that have a modicum of scale and thus demonstration effect; include in city plans
− Integrate the creation/strengthening of walking/cycling infrastructure with BRT wherever the latter is being implemented coupled
with efforts at keeping the implementers alive to the need for quality walking cycling infrastructure with BRT
− Give priority to strengthening walking/cycling infrastructure in areas (residential, commercial, educational areas and around
transport terminals) where the city management/authorities are more amenable to change
− Advocate for recasting unfavorable regulations if they come in way of improving walking/cycling infrastructure
− Improve approach and manage externalities better by:
o Promoting walking/cycling as both pro poor and green agendas simultaneously
o Improving externalities such as law and order and street lighting
o Developing and implementing a sensitized hawker‟s policy to ensure their sidewalk presence without creating obstructions
 Promote Public Bike Sharing (PBS)
− Attract the affluent and the influential people of the society in order to influence the policy and decision makers
− Do not wait for the infrastructure to happen before bike sharing programme is initiated
− Plan exposure visits for policy makers, planners and implementers to successful initiatives at scale like Hangzhou PBS system
− Raise awareness on biking; organize events and publicize widely
 In Africa, promote the availability of bicycles
− Waive /reduce import duty on bicycles
− Innovate new models of bicycles that can be locally manufactured
− Build commuters and service provider capacities to cycle, build and maintain cycles
© 2011 Intellecap. All rights reserved
Agenda
9
Executive Summary
Context and Key Definitions
Current state of urban transport
Public Transport
Paratransit
Walking and Cycling
Issues for Entrepreneurs and service providers
Solutions to solve urban transport issues
Deep Dives
Delhi, India
Manila, The Philippines
Nairobi, Kenya
Annexures
© 2011 Intellecap. All rights reserved
Context and scope of the project
One of the key challenges for urban agglomerations or cities have been to improve the mobility for the urban poor, who are the most
marginalized in the face of rapid urbanization, population explosion and congestion due to the increase in the number of private vehicles. In
this regard Intellecap has been mandated to understand how to improve mobility for the urban poor, by identifying innovative
business/service models, good practices and policy level interventions that maximize mobility for the urban poor across Asia and Africa. As
part of the study we looked at innovations in the areas of public transport, paratransit and walking and cycling across the Asian and African
cities and identified best practices and solutions that would improve the value proposition for the urban poor commuters and entrepreneurs.
10
Impact of urban
mobility on the poor
Helps the poor
consumer access jobs
and other services
Provides employment
opportunities for the
urban poor (For ex:
Drivers, conductors,
entrepreneurs etc.)
© 2011 Intellecap. All rights reserved
Key Definitions
 Public transport: Government run transportation systems for the public, usually based on high capacity vehicles such as trains, buses
with a capacity of more than 40 seats
 Paratransit: Informal, privately run transportation systems for the public, such as Jeepneys (Manila), Rickshaws (Dhaka), etc.
 Primary Mode: Any transportation mode (public or paratransit) which is majorly used for long distances (>8km length) commuting
 Feeder : Modes which connects people to the primary modes. Generally the feeders are privately run paratransit modes . The average
trip lengths assumed for feeders is 3-8 kms
 Modal Share: Percentage of trips using a particular type of transportation to total number of trips
Value Propositions for the poor commuters:
 Affordability: The affordability is calculated as the ratio of monthly expenditure on a mode of transport to the average income (per
capita) in the city
 Accessibility: Degree to which the transport mode is available when needed based on anecdotal and secondary evidence
 Other value propositions such as safety, trip time, comfort etc. were also taking into consideration for analysis
11
© 2011 Intellecap. All rights reserved
Agenda
12
Executive Summary
Context and Key Definitions
Current state of urban transport
Public Transport
Paratransit
Walking and Cycling
Issues for Entrepreneurs and service providers
Solutions to solve urban transport issues
Deep Dives
Delhi, India
Manila, The Philippines
Nairobi, Kenya
Annexures
© 2011 Intellecap. All rights reserved
The urban poor mostly use public transport, walk or cycle
30.6
50
23
66.9
36
64
2.5
14
13
0 20 40 60 80 100 120
Mumbai
Bangkok
Delhi
Modal shares of low income commuters4
Public transport
Walking/Cycling
Other Modes
13
 Long distance trips are generally done using public transport modes such as metro, buses, ferries etc.
 In cities where public transport infrastructure is weak long distance trips are done using primary paratransit modes such as Matatus,
Danfos, Jeepneys etc.
 Paratransit feeders are used for short distances, though the modal shares of feeders among the low income sector is low
 The poor resort to walking or cycling for short distance trips, the modal shares of walking/cycling in the low income section is very high
© 2011 Intellecap. All rights reserved
Most Asian and African cities have weak public transport;
paratransit fills the gap left by public transport in most cities
 Public transport is relatively more developed in Asian cities when compared to their African counterparts
 In cities where public transport is weak, paratransit fills the gap left by public transport. For example: The modal share of public transport
in Manila is 14% and that of paratransit is 42%
14
75
57 59 56
50
46
41
30 28 26
21
15 14 14 12 10 9 9 7 4 4 2 1 0 0
6
22
13
9
25 33
18 39
46
36
36
49
25
3
44
27
61
44
70
30
40
26
10
60
13
6
0
0
0
10
30 14
19
6
26
19
0
1
2
3
0
3
0
1
11
5
2
1
16
4
5 28
35
25
5 5
9
4
57
10
18
14
19
32
19
24
3
14
6
29
16
10
14
3
2
10
0 0 0
6 6 9
3
13 7
12
22
42
51
24
40
24
35
19
26
37
61
75
21
0
10
20
30
40
50
60
70
80
90
100
Modal shares across multiple Asian and African cities5
Public Transport (Bus, Metro rail) Bicycle and Walking Motorcycle Private Cars, Taxis Paratransit modes
© 2011 Intellecap. All rights reserved
Public transport is 3.3 times more affordable in Asia when
compared to Africa
15
No Frill services cater to the poor:
0.35
1.16 1.1
0
0.4
0.8
1.2
1.6
Public transport
(Asia- No-frill
services)
Public transport
(Africa- No-frill
services)
Public transport
(Asia- Luxury
Services)
Cost for 10Km trip (USD PPP basis)1
 With the exception of cities like Mumbai which have strong no-frill
rail networks, the poor mostly use buses for commuting
 The modern day metro trains are not catering to the poor both
from affordability and accessibility perspective. For example: 77%
of the commuters who use the metro in Delhi are people with
monthly incomes of USD 3786 or more whereas the per capita
monthly income of Delhi is USD 104
 On the other hand building efficient mass rapid transit systems on
rail is an expensive affair
 Buses are more accessible when compared to trains as trains are
built for commuting in the heart of the city (where high capacity
commuting is required) and most of the poor stay in suburbs
 Commuting in buses is relatively more time consuming when
compared to trains
Policies are in the right direction:
 Focusing on luxury public transport for the non-captive users
(middle class and the rich) to reduce congestion on most city
roads
 Some cities have enacted pro poor policies such as subsidies for
no frill services
 Policy makers have also recognized the importance of giving
„right of way‟ for public transport and NMT commuters
 Public transport modes can be classified into two broad
categories a) no-frill services b) luxury services . No-frill public
transport modes are basic services while the luxury services
provide value adds such as air condition, comfortable seats
etc.
 No frill public transport modes are the most affordable public
transport modes. No frill public transport modes are 3.3 times
more affordable in Asia when compared to no-frill services in
Africa ; in fact they are as expensive as luxury services in Asia
 Luxury public transit modes (such as low floor AC buses, AC
trains and metros) are 3.1 times more expensive when
compared to no-frill modes in Asia
Poor use buses more than metros, despite higher transit time
© 2011 Intellecap. All rights reserved
Non compliance of regulations by private bus operators results
in bad commuter experience
 In some cities bus operations are outsourced to private players who
run the fleet on the regulations which are pre determined by the
government agencies such as the Road Transport Authority (RTA)
 In most cities these private players do not comply with the guidelines
which negatively impacts the overall commuter experience. Here are
a few issues with privatizing buses.
− Overcharging: In some cities the private players do not
comply with the fare regulations by the government. For
example, in Nairobi, private buses charge higher fares during
peak hours. This deters them from using public transport
− No Schedule or route planning: One of the main features
that differentiates public transport from paratransit is
scheduled operations. In most cities private buses do not run
on fixed schedules and most of them do not have proper route
planning as most of them end up plying in the arterial routes
and neglect the internal routes impacting the accessibility of
commuters
− Over speeding: Oversupply of buses on some roads results
in competition between various private bus operators who end
up driving rashly to both pick up more passengers and to do
more trips. This makes it very risky not only for the commuters
traveling in the bus also for pedestrians and other road users.
16
Over supply of buses at a bus terminal in Nairobi
Case of blue line buses in Delhi: The Blue line buses
were operated by the private players in Delhi. The owner of
the bus would take a route license from the government and
gave out the bus to drivers on rent. The licenses were not
capped and hence there were many buses plying the same
route which created a huge demand supply mismatch. This
not only encouraged the driver to drive fast to do more trips
per day, but also created cutthroat competition among bus
operators for picking up more commuters. This made the
commuters experience quite unpleasant.
© 2011 Intellecap. All rights reserved
Primary paratransit modes are more expensive than public
transport across Asia and Africa
17
0.35
0.52
1.16
1.64
0
0.4
0.8
1.2
1.6
2
Public transport
( Asia- No-frill
services)
Primary
Paratransit
(Asia)
Public transport
( Africa- No-frill
services)
Primary
Paratransit
(Africa)
Cost for 10Km trip (USD PPP basis)2
In cities with weak public transport, paratransit acts as a
primary mode
Other issues with primary paratransit modes
In cities with weak public transport, paratransit acts as a
primary mode:
 Primary paratransit modes are 1.4 times more expensive than
public transport modes in both Asia and Africa
 All paratransit modes are no-frill services
 The capacity of primary paratransit modes is relatively lower
than public transport modes and is one of the reasons why
paratransit modes are more expensive
Other issues with primary paratransit modes:
Low capacity of the mode increases congestion: With rapid
motorization, the use of low capacity primary paratransit modes
will only worsen the congestion levels in the city.
• Congestion a curse to the poor: In cities like Nairobi and Lagos
where the price of the Danfo and Matatus fluctuates with the
amount of traffic on the road, congestion becomes a curse to
the poor. For example in Lagos a peak hour 10km ride in a
Danfo would cost 100 Naira, whereas the same distance for a
private car owner would cost only 65 Naira (1 liter of petrol).
This encourages more cars to come on the road, further
increases congestion and impact the poor adversely
Use of old vehicles increases pollution: In Lagos, Nigeria the
average age of Danfos is 15 years, these are generally used
vehicles which are imported from the United Kingdom.
Entrepreneurs buy older vehicles because the import duty on older
vehicles is much lower, creating misaligned incentives
Speeding and Rash driving:
Speeding and rash driving has been a common trend observed
across multiple primary paratransit modes. Sometimes the owner-
ship structure is a major reason for over speeding, for example a
driver who takes a vehicle on rent tends to driver rashly (as its not
his vehicle) when compared to driver who owns the vehicle
© 2011 Intellecap. All rights reserved
Paratransit feeders (used for short trips) can be classified into
three major types; typically not used by the poor
18
Non Motorized Motorized (Non Shared) Motorized (Shared)
Definition
These are modes which do
not have a motor and run on
man / animal energy
These are vehicles that run on a motor, non-
shared modes are the ones where the cost is
borne by single commuter
These are vehicles that run on a motor,
shared modes are ones where the cost is
borne by more than one commuter
Examples
Rickshaws (pedal powered
three wheeler), animal carts,
rented cycles and the like
Okada (Bike Taxis), unshared Autos and taxis Shared autos, Tricycles (bike with a cabin
attached) ,
Capacity
(Seats)
2-3 1-4 3-8
Average trip
length
2-3 kms Okada: 3-5 kms
Non shared taxis: NA
3-8kms
0.38
1.1
0
0.2
0.4
0.6
0.8
1
1.2
Paratransit Feeders (Asia) Paratransit Feeders (Africa)
CostinUSD(PPP)
Cost for 3km trip using various feeders 3
Feeders are expensive across Asia and Africa:
 A 3km trip using a feeder in Asia and Africa would cost
roughly 70% of the cost of using a primary paratransit mode
for a 10km trip
 On an average a consumer spends 4-17% of his monthly
earnings to use the feeder, which is high considering feeder
would only connect him to a primary mode and doesn‟t
complete the trip
© 2011 Intellecap. All rights reserved
Paratransit feeders: unsafe, cause congestion and pollution
 Large number of feeders cause congestion:
– Large number of low speed, low capacity vehicles cause congestion in the city and hence feeders are being banned from main
roads in the cities and can only operate in internal roads. Like in case of Tricycles and Pedicabs in Manila, the cycle rickshaws are
also banned from major roads in Dhaka. There are more than 600,000 such cycle rickshaws which impact the livelihoods of 2.4
million people (assuming 4 people per family), banning rickshaws creates huge amount of unemployment and its an highly
political issue to implement such laws effectively in cities like Dhaka.
– The policy makers recognize the same and are planning to use the rickshaw as an efficient feeder which is integrated into the
public transport system that they aim to develop. In the past the rickshaw acted as a primary mode as the average trip lengths
that commuters used to travel were low, but as the city is expanding rapidly the average trip lengths have also increased and
hence the rickshaws can no more act as primary modes
 Feeders such as Okadas and Tricycles are extremely unsafe: The Okadas (Bike taxis) and the tricycles are very unsafe for
passengers as the unique selling proposition (USP) for such modes is speed and swift maneuverability the Okada and tricycle drivers
are thus forced to drive rashly and are involved in lot of fatal accidents. (over 14% of the accidents that Okada drivers meet with are fatal
accidents)
 Pollution: Paratransit feeders are one of the major sources of pollution especially in cities which are predominately dependent on
motorized feeders, for example Manila has over 100,000 tricycles. Use of old technologies (such as two stroke engines) and non-
ecofriendly fuels such as diesel and petrol worsens the scenario in such cities.
 Drivers overcharge commuters and do not follow regulations: Though paratransit rates are regulated in most Asian cities it is often
observed that drivers do not comply with the regulations and tend to over charge commuters. The paratransit space is very unorganized
and hence maintaining discipline in terms of fares charged and the way the drivers drive is extremely difficult
19
© 2011 Intellecap. All rights reserved
The policy environment for promoting cycling is more conducive in Asia and Anglophone Africa
than in Francophone Africa
0
10
20
30
40
50
60
70
0 10 20 30 40 50 60 70 80
Modalsharepublictransport
Modal share walking/cycling5
Surat
Weak public transport and unaffordable paratransit result in high
numbers of captive walking/cycling commuters
20
Seoul
Shanghai
Bangalore
Accra
Abidjan
Tokyo
Mumbai
New Delhi
Chennai
Kolkata
Lahore
Manila
Johannesburg
Dakar Lagos
Addis Ababa
Nairobi
Guwahati
Douala
Dar Es Salaam
Colombo
Cape Town
Bangkok
Hangzhou
Istanbul
Ahmedabad
 Walking and cycling are used
mostly by the poorest of the poor
in both Asia and Africa
 African cities heavily favour
walking over cycling unlike their
Asian counterparts
 While Asian Cities were always
high on cycling, its modal share
has declined over time7
 Despite the decline of the modal
share of bicycling over the years,
Asian cities are comparatively
much higher even now on their
modal share of bicycling over their
African counterparts that have
always had and still have a
negligible modal share of bicycling
 Promotion of bicycling in African
cities is harder as they need
development of cycling skills and
efforts to make bicycles available
at a large scale
© 2011 Intellecap. All rights reserved
The urban transport environment is hostile to pedestrians and
bicyclists
21
Example –fatality data from 35 Indian cities suggest
that the fatality rates are on rise
0
10000
20000
30000
40000
50000
60000
2009 2010
High and Rising Fatality in Indian Cities8
7.2%
Pedestrians and cyclists comprise a major share of
fatalities in 35 Indian cities
25%
22%
14%
10%
8%
6%
5%
5%
5%
Fatalities by type of road user - 2010
(n = 12935)8
2-Wheeler Bicycle/pedestrian
Truck/Lorry Car
Bus Other
Tempo/Van 3- Wheeler
• Between Bicyclists and Pedestrians, the latter are
the worst hit among fatalities
• Bicycle is perceived as poor man‟s transport in many
Asian cities
© 2011 Intellecap. All rights reserved
Poor urban transport environment for walking/cycling increases privately
owned motorized transport leading to negative externalities for all commuters
47 45 44
39 38 38
2322
39
8
21 22
10
16
Chennai Nanchang Bengaluru Delhi Changzhou Shanghai Xi'an
Declining modal share of walking in Asian cities7
Previous
Later
22
2001
2008
2002
2005
1984
2007
2002
2008
1986
2006
1986
2004
2002
2006
Year
Cities Mode with Greatest Gain
Bengaluru Two Wheeler and Car
Changzhou Two Wheeler and Car
Chennai Two Wheeler
Delhi Two Wheeler and Car
Nanchang Car
 Most of those walking/cycling are “captive users” who
would readily shift to privately owned motorized
transport as soon as they can afford to
 Shifting to privately owned motorized transport leads
to negative externalities like congestion, pollution and
safety hazards
© 2011 Intellecap. All rights reserved
Policy to promote walking/cycling has left much to be desired
both in Asian and African cities
 Primarily driven by the low carbon agenda of the funding
agencies like UNEP, GEF, etc.
 Difficult to push through policy changes across all cities in
any country owing to diffused responsibilities across
geographies
 Very few cities across Asia have robust policies on
promoting walking/cycling
 Multiplicity of institutions with lack of clarity on the
institutional level roles and responsibilities results in poor
planning and implementation of walking/cycling policies
 Cities that are quite congested already often do not have
enough space for dedicated walking/cycling tracks, leading
to a general reluctance on their part to push the
walking/cycling agenda
23
 Barring South Africa, policy to promote walking/ cycling in
Africa is in its rudimentary stage
 Most policy for walking and cycling is being pushed as
part of low carbon agenda
 Most of the cities in Africa are under the diktat of one
national level authority and therefore pushing policy
reforms across multiple cities in the same nation is a
relatively easier proposition in comparison to Asia
 Most African cities are still in process of implementing a
pilot project featuring their first dedicated cycling track so
that the same may prove to be an example for other cities
in the nation and even to cities located in other African
nations
 As Africa is very high on walking and quite low on cycling,
numerous examples of policies facilitating projects that
promote cycling have been observed in Africa
 Reluctance to promote dedicated cycling tracks is
stronger in Africa than in Asia as the former are seen
settling for or advocating mixed traffic with speed limits of
25-30 kmph with heavy policing
Policy on promoting walking/cycling is weak in Asia with
very few cities having planned and executed on them:
Policy on promoting walking/cycling is weaker in Africa
than in Asia with few cities being able to even begin
planning and execution
© 2011 Intellecap. All rights reserved
Traffic engineering, limited budgets and lack of champions limit
political will for promoting walking/cycling
 It is the poorest of the poor who walk and cycle and their ability to sway policy making, planning and implementation in their favour is
rather limited
 The “traffic engineering” paradigm of urban transport development that focus on the mobility of the vehicles rather than “integrated
transport” paradigm that focuses on the mobility of the people results in policy on walking/cycling being neglected. The former paradigm
results in
− No policy that focuses on walking and cycling
− Commitment of resources for creating infrastructure for privately owned motorized transport
 Champions of policy making in favour of privately owned motorized transport are many with strong lobbying to further their agenda
 The genuine need for providing infrastructure for public transport often crowds out funding of walking and cycling related infrastructure
Some bright spots:
 People‟s Republic of China (PRC), the world‟s most populous nation accounting for nearly one fifth of the humanity and once known as
“Cycling Kingdom” of the world have decided to promote walking/cycling across its cities in order to arrest the decline and increase the
modal share of walking and cycling
 India, the second most populous nation of the world accounting for one seventh of the humanity in its National Urban Transport Policy
(NUTP) seeks to adopt the “mobility” paradigm as against earlier paradigm of “traffic engineering” in urban transport development
 African cities have been approached by agencies like UNEP who have initiated pilot projects in important cities like Nairobi (Kenya) on
promoting walking/cycling, so that the same may have the much needed demonstration effect across other cities in Africa
 Asian cities other than China and India have also shown similar enthusiasm in moving towards “mobility” paradigm from the “traffic
engineering” paradigm (example – Bangkok in Thailand, Changwon in South Korea and Manila in The Philippines)
24
© 2011 Intellecap. All rights reserved
Agenda
25
Executive Summary
Context and Key Definitions
Current state of urban transport
Public Transport
Paratransit
Walking and Cycling
Issues for Entrepreneurs and service providers
Solutions to solve urban transport issues
Deep Dives
Delhi, India
Manila, The Philippines
Nairobi, Kenya
Annexures
© 2011 Intellecap. All rights reserved
Three ownership structures are possible in paratransit space
26
 Dual Entrepreneur Model: Common in both feeder and primary paratransit modes. For example the model is seen in case
of cycle rickshaws in Asia as well as in case of Danfos in Nigeria. In this model the driver and conductor (primary modes) are
more vulnerable. The owner earns rent from a fleet of vehicles. The driver is generally responsible for all the operational
costs while the owner takes care of periodic costs such as licensing, maintenance etc
 Owner-Driver Model: In this case the owner hires his staff to run his fleet of vehicles. The staff, which includes the driver
and his assistant (conductor) often belong to the low income groups (public transport modes also operate on this model)
 Owner is the Driver Model: This model is largely seen in paratransit feeders where the driver can afford to buy low
capacity paratransit feeders as the capex is low. In this case the owner is the driver and he is likely to be from low income
segment
Dual entrepreneur model Owner – Driver Model Owner is the Driver Model
Owner
Owns a fleet of vehicles
and gives them out for rent,
the revenue source for the
owner is only rent
Entrepreneur/Driver
Takes the vehicle on rent
and does business
Owner
Owns the vehicles and
hires drivers/other staff to
run the operations
Driver
The driver/other staff work
on fixed salary often with a
variable component
The owner is the driver in
this model, there are no
additional costs such as
rent or salary
© 2011 Intellecap. All rights reserved
Operators who run Non-Motorized modes are most vulnerable;
drivers who run their own vehicle earn the most
27
 The drivers who work on a salary earn less than the drivers who
operate the vehicles on rent
 In the case of Jeepneys in Manila, the drivers earn less than the
per capita income because of an oversupply of Jeepneys in the
city. The rent of the Jeepney is often twice the daily earning of
the driver
 Drivers often cannot afford to buy the vehicles because of the
high capital expenditure required
650
366
998
292
470
254
499
316
0
200
400
600
800
1000
1200
Matatu (Nairobi) Mini Bus
(Gurgaon, Delhi)
Danfo (Lagos) Jeepney
(Manila)
Operators earnings in USD (PPP) Per capita income of the city
 The monthly earnings of motorized modes are at least 2-5 times
greater than that of non-motorized modes. Rickshaw pullers in
most cities earn less than the percapita income of the city
 The monthly earnings of drivers who run their own vehicles is
higher than that of drivers who take the vehicle on rent
Drivers taking vehicle on rent
For Nairobi low income expenditure was taken into account
Salaried drivers
207
436
554
1383
253
316
499
254
0
200
400
600
800
1000
1200
1400
1600
Cycle Rickshaw
(Dhaka)
Tricycle-Shared
(Manila)
Okada (Lagos) Shared Auto
(Gurgaon, Delhi)
Operators earnings in USD (PPP) Per capita income of the city
Driver is the owner
Drivers taking vehicle
on rent
Rickshaw drivers are mostly migrant farmers who migrate to cities
from rural areas in non-farming seasons. Hence most of them
prefer to take the vehicle on rent. In Indian cities almost 95%
rickshaw pullers take rickshaws on rent11
In primary paratransit, drivers who take vehicles on rent
earn more9
In paratransit feeders operators who own their vehicle earn
more 10
© 2011 Intellecap. All rights reserved
Long work hours and pressure to recover rent/ earn additional
income pushes paratransit operators to break rules
28
Over speeding/ rash driving :
In both the dual entrepreneur and the owner-driver based model the drivers are under pressure either to recover the rent that they owe to
the owner and to earn more to take home, which results in over speeding. In the case of owner cum driver model the chance of over
speeding is lower because the driver owns the vehicle and is likely to be more conscious while driving
Over charging: Over charging is not uncommon especially in African cities where the fare of the Matatu ride changes with the amount of
traffic on the road and the time of the day, Sometimes it also changes based on the weather conditions, for example on rainy days they
charge more. Over charging happens because the driver wants to earn an extra buck and most of the times the money doesn‟t eventually
reach the owner of the vehicle. Even when the prices are regulated drivers overcharge in high demand periods as the sector is completely
unorganized it is tough to maintain discipline across various operators
Not complying to licensing norms: There are a lot of cases where paratransit operators run their vehicles without a license. This is
especially seen in the case of rickshaws where most operators are migrants and do not have proper identification or a permanent address
on which is mandatory to procure a license. For example in case of Dhaka there are more than 600,000 cycle rickshaws that ply in the
metropolitan area and only roughly 90,000 of them have licenses.
Lifestyle of typical paratransit operator:
A typical paratransit driver spends 14-16 hours working everyday. Most of them
are addicted either to alcohol, tobacco or other harmful items. Many rickshaw
pullers are migrants who come to the city for employment and live out on the
rickshaw as they do not have housing. In the case of Jeepney in Manila, housing
is provided by the owner (all Jeepney drivers under a particular owner go back to
the garage and spend their nights there). Even Okada drivers are addicted to
drugs, and often drive the Okadas because of high levels of unemployment in
Lagos.
© 2011 Intellecap. All rights reserved
Agenda
29
Executive Summary
Context and Key Definitions
Current state of urban transport
Public Transport
Paratransit
Walking and Cycling
Issues for Entrepreneurs and service providers
Solutions to solve urban transport issues
Deep Dives
Delhi, India
Manila, The Philippines
Nairobi, Kenya
Annexures
© 2011 Intellecap. All rights reserved
Solutions to improve urban mobility of the poor – a snapshot
30
Public transport Paratransit Walking/Cycling Stakeholders (Paratransit)
Issues
1. Affordability
2. Long travel time
3. Non compliance of rules by
private operators
1. Affordability
2. Lack of safety
3. Highly polluting
1. Lack of safety
2. Poor Walkability in cities
3. Accessibility
1. Lack of organization
2. Access to formal finance
BestPractices
1a. Provide subsidies for the
poor and design innovative
pricing mechanisms
1b. Build infrastructure to
provide „right of way‟ to
public transport users
1c. Operate buses under single
authority or promote limited
competition
2a. Regulate pricing
2b. Use high capacity vehicles
2c. Use eco-friendly
technologies
3a. Create appropriate
infrastructure
3b. Promote public bike sharing
(PBS)
3c. Promote bike ownership
3d. Promote cycling in regions
with low cycling modal
share
4a. Organizing the sector
4b. Providing access to finance
1 2 3 4
5a. Single urban transport authority
5b. Urban transport fund
Efficient city planning and management a key to implement most best practices (Best Practices)
5
© 2011 Intellecap. All rights reserved
Transport policies support subsidies and innovative pricing
mechanisms
31
Providing subsidies to the poor and improving ridership on public transport modes through innovative pricing
mechanism is part of most country level transport policies, to state a few:
 The Indian National Urban transport policy clearly states that the government would always provide basic services
(no-frill) to the poor at a subsidized price
 The Dhaka policy states that the government will plan a public-private partnership (PPP) to improve the public
transport levels in the city and will plan to provide subsidies to the poor as stated in the “Poverty Reduction Strategic
Plan” (PRSP) even if the public transport is privatized
 The Johannesburg city policy clearly states that the state will aim to provide transportation which would not cost more
than 10% of the monthly earnings for any income group customer. The policy also aims to cross subsidize services
to the poor by using innovative pricing mechanisms
 The Philippines national policy is pro subsidies for sensitive groups such as women, disabled, etc. The policy is
however against subsidies for all and cross subsidies. The policy also recommends PPP if necessary and guides the
transport authorities to design tariffs by taking all costs and operators margins into account
Most governments plan to use Public Private Partnerships (PPP) to address the funding gap and improve the speed of
executing public transport projects. Some governments are raising money through multilaterals. For example; the BRT
project phase 1 in Lagos received financial support from World Bank and they are in talks with French Development
Agency (AFD) for raising credit for phase 2
1a
© 2011 Intellecap. All rights reserved
Innovative pricing and subsidies make public transport more
affordable to commuters
Innovative pricing mechanisms for all commuters:
Innovative pricings can make public transport more affordable for all commuters and indirectly also impacts the poor
Case Study 1 : (Mumbai Local trains- Monthly packages)
32
The Mumbai local trains are one of the most affordable means of public transport modes across Asia. The regular fares itself are quite low
but monthly packages make them even more affordable. For example Andheri-Virar-Andheri, a 108 km stretch on a daily basis would cost
only USD 2.92 per month12 for the consumer if he takes the monthly pass. As per the comparison above irrespective of the trip length
consumers save 70% on average by choosing the monthly package. The quarterly packages would make commuting even more affordable
Case Study 2 : TransJakarta BRT (Government bears 50% of the operational expenditure to provide affordable transport)
 In the TransJakarta BRT service in Jakarta, Indonesia the government bears 50% of the operational expenses every year to make
commuting more affordable. In the year 2011 the bus services only generated 39 million USD through ticket sales while the overall
operating expenses were 76 million USD. The government has borne the remaining amount and currently provides the service to
consumers at Rp 3,500 (which is approximately 40 cents per trip)
Route
Distance
(Kms)
Monthly expense on daily
fares (USD)
Monthly package price
(USD)
Savings (USD) /% Saving
Andheri-Vile Parle 4 4.52 1.32 3.2 (71%)
Andheri-Churchgate 28 7.8 2.35 5.3 (70%)
Andheri- Virar 54 12.3 2.92 9.5 (76%)
1a
© 2011 Intellecap. All rights reserved
Pro poor pricing and subsidies go a long way in making
public transport affordable for the urban poor
Pro poor pricing mechanisms and subsidies:
These are pricing innovations that are specially targeted towards the poor and have a direct impact on the poor
Case study 1: Fixed fare, Johannesburg :
 Some services have fixed fares irrespective of the distance you travel (For example: No-Frill buses in Bangkok),
these services are pro poor assuming the poor travel the farthest. By having a fixed price indirect cross subsidizing is
happening as the rich who travel shorter distances pay more than the poor who travel farther
Case study 2: Subsidized monthly packages for the poor and sensitive groups in Delhi buses:13
 Apart from providing a better price for all consumers who procure a monthly package the Delhi Transport corporation
(DTC) also provides special monthly fares for the poor and other sensitive groups such as senior citizens, students,
disabled etc.
33
Passenger type Fare (INR)
Regular Passenger 800
Poor user (the poor will have to provide a below
poverty line (BPL) card to avail this offer)
500
Students 100
Senior citizens 50
Disabled Free
1a
© 2011 Intellecap. All rights reserved
Providing ‘right of way’ for public transport users would
reduce trip times; most policies are looking at it
Rapid motorization is causing congestion in most large cities and the users of public transport are penalized for the rapid growth in public
transport. For example : buses in Delhi carry 44% of the vehicular passengers (excluding passengers who walk/cycle) but buses account for
only 1.55% of the total vehicles on the roads of Delhi. This clearly means that commuters who use public transport are being penalized for
congestion caused by private vehicles. Policy makers have identified this as an issue and are creating policies focused towards providing
„right of way‟ for public transport users
On the other hand cost of building the metro rail system is much higher when compared to building mass rapid transit systems with buses
(for a kilometer of rail system 12 kms of bus systems can be built)
34
Policies focused on providing ‘right of way’:
 The Indian National Urban Transport Policy (NUTP) clearly states that
transport planners in other federal states in India must focus on equitable
distribution of space for public transport and non motorized transit users.
The policy clearly calls for a focus on creating lanes for high occupancy
vehicles.
 The polices of various cities such as Delhi, Ahmedabad, Mumbai etc. focus
on the need of developing a bus rapid transit system on the city roads
 The city policy of Dhaka also clearly calls for the need of BRT in the city
and also states that the government would use the „Build operate and
transfer model‟ with a private player to fund the project
There are three types across the world, segregated bus ways through painted
lines, segregated lanes and comprehensive BRT lines (with fare
integration etc.)
1b
© 2011 Intellecap. All rights reserved
Bus Rapid Transit lanes improve the trip times for bus
passengers: BRT Lite - A case study of Lagos
Context:
 Lagos is the 6th largest city in the world in terms of population
and the largest city in Africa with a population of 17 million. It is
a city which is predominantly dependent on paratransit and
private vehicles for commuting, while 25% of the population
used buses (which contributed to 4% of the vehicles on the
road) transit is time consuming and expensive
The BRT Project:
 The Lagos Metropolitan Area Transport Authority (LAMATA) in
2008 decided to invest in a BRT-Lite system which required a
cost of $1.7million per km when compared to $6 million per km
for a comprehensive BRT
 Key takeaways:
− Stakeholder engagement: LAMATA ensured that it kept
all key stakeholders in mind while planning the BRT
corridor. LAMATA was also successful in forging
partnerships with key organizations such as the National
Union of road transport workers, which formed a
cooperative to run the BRT system
− Strong inter-agency coordination: coordination between
multiple agencies was the key for the implementation of
the project
35
Project Impact:14
Currently the BRT operates 220 buses, moving
200,000 passengers on a daily basis
 The journey time reduced by 25 minutes from
one end to the other end of BRT
 The rates have fallen from 230 Naira per
person to 100 Naira per person post the BRT
1b
© 2011 Intellecap. All rights reserved
Bus Rapid Transit lanes improve the trip times for bus
passengers: Comprehensive- BRT Guangzhou
36
Context:
The city of Guangzhou, with a population of 11-15 million people and 32%
modal share (as of 2007) for bus commuting was highly critical to provide
a right of way for buses and relieve them from congestion. In 2010, the
first 23km BRT lane with 26 stations was implemented in Guangzhou and
was immensely successful
Impact:15
Today, over 800,000 people use the BRT buses on a daily basis and it
carries 23,000 passengers / hour in a single direction. This is 4 times
greater than the next big BRT in Xiamen, China which carries 7400
passengers/hour. The Guangzhou BRT is second only to TransMilenio
Key features for success of the BRT:
 Pedestrain foot over bridges for pedestrian crossing at every station
which makes the entry and exit from the station very safe
 Electronic ticketing system where the passenger just needs to tap a
smart card (which is known as Yang Cheng Tong) while entering and
while exiting a station for the amount to get deducted directly. This
card is a multi purpose card which is not just used for transport related
costs
 Multi-modal connectivity: The BRT lanes are connected to three metro
stations and have public bike sharing systems (PBS) integrated to the
BRT lanes
Key design elements make this rapid transit system the
world's longest BRT stations - around 260m (in city
centers) including bridges - with bus volumes of 1 bus
every 10 seconds or 350 per hour in a single direction. In
suburban areas the station is 60m wide and has lesser
volume. The BRT system has two new lines and two
extensions planned
Planning for pedestrian safety and implementing
consumer friendly systems make the Guangzhou BRT the
efficient system that it is today. The Guangzhou system is
known for providing metro like services over buses
1b
© 2011 Intellecap. All rights reserved 37
Some city governments choose to privatize the bus operations which creates many problems like the private players not complying with
various rules set by the government. This non compliance results in a bad commuter experience across cities where bus operations are
privatized. Ideally, all public transport systems whether managed by public sector or the private must comply with certain rules like
 Maintaining fixed fares
 Adhering to a predetermined schedule
 Complying to safety norms (not over speeding and so on) and
 Plying only in the prescribed routes
Some possible solutions to solve these issues could be:
 Regulating licensing based on travel demand: The city governments may issue licenses in a particular route based on travel
demand in that route. Over issuing of licenses would create unnecessary competition which would force the bus drivers to over speed to
make extra revenues. Proper route planning and issue of licenses should be implemented in an efficient manner to solve this issue.
 Operating the entire bus fleet under a single bus management agency: If many private players are involved in bus operations, the
standards of the service would vary across different players and as all players compete with each other they prefer to operate on the
high demand routes alone. To solve this problem if all the fleets are managed by a single agency and the revenues are shared with
multiple players in a transparent manner at the end of each month, it would help organize this sector better, resulting in all routes being
covered and effective fare regulation being implemented.
 Promote limited competition: By creating higher barriers for entry (for example requirement of a larger fleet size, lowest fare bid and
so on), large corporates can be attracted to operate the bus services in an efficient manner. As majority of the fleet would be owned by
fewer players resulting in healthy competition and the commuter would be benefited when such competition is promoted.
Operate buses under single authority or promote limited and
healthy competition
1c
© 2011 Intellecap. All rights reserved
Price regulations make primary paratransit more affordable
 The rates are regulated in Asia and hence the modes are more affordable. Regulation of rates make the cost/km in Asia 3 times lower
than that of Africa
 A consumer has to spend 20-30% of his monthly income in Africa to use paratransit primary modes. This is because the sector is
completely unregulated and fares fluctuate with the demand. For example in the case of Matatus in Nairobi, a onward trip which costs
Ksh 100 during peak hours would cost only Ksh 20 during the return trip during non-peak hours
 To make the commuter experience better, it is also important to implement safety norms and promote route planning either through
licensing or through self regulation
38
30
20
11.26
6
0
5
10
15
20
25
30
35
Matatu Danfo Jeepney Mini Bus (India)
%ofmonthlyincome
Monthly spending on various paratransit modes16
0.52
1.64
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Asia Africa
Cost/KminUSD(PPP)
Cost for 10km trip using primary paratransit modes in
Asia and Africa3
Regulated fares
Case Study: Manila Jeepney price regulation: The Land Transportation Franchising and Regulatory Board (LTFRB) in Manila is
responsible for regulating the prices of Jeepneys and paratransit modes to make them more affordable to the consumer. The prices are
fixed in such a way that it is a win-win for the consumer and the entrepreneur who owns the Jeepney. For ex: In Feb 2009, when the diesel
prices where P23 per liter the tariff was fixed at P7 per passenger for the first 4 kms, in the year 2011 the price of diesel almost doubled to
P45.5 but the tariff only increased to P8 per passenger for the first 4 kms. The Department of Energy (DOE) offered smart cards to Jeepney
drivers with P1050 which can be used to purchase fuel. By taking care of the entrepreneurs interests, the government is successfully able to
regulate the prices of primary paratransit modes
2a
© 2011 Intellecap. All rights reserved
Price regulation make feeders more affordable in Asia,
Shared modes are more affordable than non shared modes
 A consumer has to spend anywhere between 4-17% to use feeders . This is very high because feeders just act as connectors to primary
modes
 Of the feeders analyzed shared modes are most affordable to the poor (example: Share Auto and Tricycle). The rates of tricycles and
share autos are also regulated which makes them even more affordable.
39
17
14
5.56
4
0
2
4
6
8
10
12
14
16
18
Rickshaw Okada Tricycle Share Auto
%ofmonthlyincome
Monthly expenditure on feeders17
Shared modes
0.88
0.77
0.36
0.19
0
0.2
0.4
0.6
0.8
1
Rickshaw Okada Tricycle Share Auto
CostinUSD(PPP)
Cost for 3km trip using various feeders2
Case study: Regulated rates and routes in Manila: The rates are regulated by the Land Transportation Franchising and Regulatory
Board (LTFRB) in Manila. The current tariff rate for the tricycle is P8 for the first km and P1 for every km after that. The Metropolitan Manila
Development Authority (MMDA) recently warned the tricycle operators and reminded them to follow 1990 Metro Manila Council (MMC)
ordinance which prohibits pedicabs and tricycles along major roads in Metro Manila. All tricycles have specific franchise routes in which they
can operate as per law. This will ensure that all the 120,000 tricycles are well organized and operate in their own territories. Regulations not
only ensure that the tricycle acts as feeder but also ensures that the fares are affordable
2a
© 2011 Intellecap. All rights reserved
High capacity vehicles will improve affordability and reduce
emissions
Low capacity of the mode increases congestion: With rapid motorization, the use of low capacity primary paratransit modes will only
worsen congestion levels in the city.
Use of more efficient fuels to reduce emissions:
As many paratransit modes are either ill maintained or have a very old engine it is very critical to promote better technologies or fuels to
make them less harmful to the environment, here are a few ways to do it:
• LPG Conversion: As part of government efforts to promote fuel efficiency and reduce air pollution, the Philippines government
announced in 2008 a program to replace the engines of old jeepneys with new LPG engines. The challenge with this scheme was the
high cost of conversion P250,000 (which is 50% of the initial capital expenditure of Jeepney). Larger size vehicles require more capital to
convert into efficient fuels when compared to smaller vehicles, for example a taxi conversion would cost only P20,000
• Retro fitting engines (converting 2 stroke to 4 stroke) a potential solution for feeders: An organization called Envirofit is installing
retrofitted engines in a few cities in the Philippines. By technological additions the engines can be made more environmentally friendly,
apart from the health and environmental benefits, the fuel efficiency offered by retrofits can mean big savings for drivers of two-stroke
tricycles , and thus a big boost for their livelihoods. The retrofit kits pay for themselves in fuel savings within 10 months. To make the
upfront costs affordable, however, the cities provide micro-financing, recognizing that many local taxi drivers have little disposable
income.
40
Case of Matatu’s HCV – The Nairobi transport planners are aiming to convert all low capacity Matatus in the city to high capacity vehicles
which would not only make paratransit more affordable but also would reduce the congestion in the city and reduce overall travel times. The
process of moving from a 14 seat Matatu to a 50 seat bus, would create job losses of an average 6 persons per conversion. Hence, the
transport planners in the city want to phase out Matatus from the main areas in the city and use them as effective feeders in the suburbs.
There is a lot of resistance the government is phasing from the Matatu drivers as they anticipate that this move would lead to major job
losses in the city
2b
2c
© 2011 Intellecap. All rights reserved
Improving infrastructure for walking/cycling
Desirable features of infrastructure to improve walking and cycling
 Walkability – improving/creating walkways / footpaths / sidewalks that are continuous, clean, spacious, non encroached with resting
spaces/benches (preferably shaded) and drinking water facilities. Construction of adequate FOBs, crossings and subways
 Cycling – Building dedicated cycling tracks that are continuous, spacious, non-encroached with crossings and subways
Lessons from the example:
 Need for a strong political will to build infrastructure that favours biking and cycling
 Pre-existing infrastructure and pre-existing cycling culture in the city supported the change in favour of walking cycling
 A progressive urban transport plan and design code
 Planning for supporting infrastructure like cycle parking lots to make the feeder trips possible
 Providing interconnectivity with public transport modes like metros
41
Successful Case Example - Guangzhou, China
For decades many Chinese cities have provided dedicated roads for walking and cycling. Most Chinese cities provide pavement,
crosswalks, bike lanes and traffic signals for bicyclists and pedestrians. An important reason was adherence to the urban road transport plan
and design code (GB-50220-95) which necessitated construction of pavements (along main and subsidiary roads) that could also be used
by the bicycles. The city of Guangzhou witnessed a fall in the modal share for walking/cycling when use of privately owned motorized
modes increased at the cost of walking/cycling, until the city of Guangzhou banned motorcycles in 2007. Local lawmaker Chen Zhongqian
first proposed the city do more to accommodate bicyclists during the annual session of the city‟s people‟s congress in January. Since that
time, Guangzhou urban planning bureau has reopened many of the closed cycling lanes along major urban roads where the conditions
allowed. Besides, it decided to build bicycle roads along with all the new roads and required new residential buildings, especially near metro
stations to set aside space for bicycle parking lot. The initiatives not only helped increase once again the number of bikers in the city but
also relieved some pressure from the public transport system.
3a
© 2011 Intellecap. All rights reserved
Improving infrastructure for walking/cycling
Lessons from the example
• Designing of the track needs to be done keeping the principles of continuity, spaciousness, comfort and safety of the commuters under
consideration
• Maintenance of tracks is necessary to keep them commutable
• Anticipation of possible encroachments and building in mitigation measures such as spaces for the hawkers is also necessary
Note: Asia has a pre existing biking culture and this goes in favour of promoting cycling. In India however, there is a social stigma attached
to biking and this perception needs to be changed if modal share of cycling were to grow significantly
42
Unsuccessful Case Example – Pune, India : Pune has the highest walkability index in India as per a recent study conducted by Clean Air
Initiative (CAI) – Asia funded by Shakti Sustainable Energy Foundation. Pune, was fast losing its reputation as the cycling capital of India,
when the NMT cell of the Pune Municipal Corporation (PMC) decided to develop 300-km long dedicated cycling tracks. By early 2011, the
city had built 132 kms of dedicated cycle tracks on 20 roads which together made 18 cycling tracks in Pune. As per Parisar, an organization
working for improving cycling in Pune, they decided to take stock of the performance of 12 out of the 18 tracks as they did not consider the
remaining 6 tracks “even fit to be called cycle tracks”. They surveyed 12 tracks that were 87.5 km long and discovered that they were in
“terrible condition”. “Research found encroachments like slums, hawkers, electric poles, garbage bins, traffic and CCTV poles. Lights,
signages, differentiation between a footpath and cycle track, ramps and shades and connectivity between tracks were also missing. If
obstructions are added up, they come to a whopping 3,900 on tracks studied.” (Times of India, 26th December 2011). The study inferred that
the PMC failed to focus on continuity while designing the tracks. They assessed that policy needed to be put in place to assess and
maintain the tracks. The Municipal Commissioner has taken action to rejuvenate the NMT cell by making appropriate budgetary allocations
and mooting the idea of appointing a cyclist to take care of the cell.
3a
© 2011 Intellecap. All rights reserved
Asia is the fastest growing market for Public Bike Sharing
Rationale for promoting Public Bike Sharing
 Expands the choice of mode for the poor who can reduce their travel
time and afford the cost of transport
 Provides feeder services to and disbursal services from the primary
modes of transport and helps the poor commute longer distances
 Eliminates the threat to loss of cycles through theft as usually it provides
for secure parking for bikes that are owned and are taken care of by
either the government (example-Hangzhou, China) or by a private
enterprise (example-Rajkot, India)
Examples of Public Bike sharing in Asia (fastest growing market for
bike sharing)
 TownBike programme of Singapore (1999-2007) – A first in Asia
 Taito Bicycle sharing Experiment in Taito, Japan – 2002-03, 130 bicycles
at 12 locations
 Nubija bike sharing programme in Changwon, South Korea – 2008 – 430
bicycle, 20 terminals
 C-Bike in Kaohsiung City, Taiwan – and the Youbike programme with
500 bicycles at 10 locations – 2009
 Public Bike sharing system in Hangzhou, China – 2008, IT based
systems comprising 40,000 bicycles with 1600 stations with plans of
expanding to 50,000 bicycles across 2000 stations by 2009.
 The Chinese cities of Beijing, Tianjin, Hainan, and Suzhou launched pilot
programs in 2008 and 2009.
 Ministry of Urban Development in India is preparing to launch a 10-city
public bike scheme as part of its “Mission for Sustainable Habitat”
43
Successful Public Bike Sharing – Hangzhou,
China18
 Provides seamless connection of bicycle based
slow speed traffic with metro and bus based public
transport
 Affordable at free first hour, @ 1 Yuan and 2 yuan
in the 2nd and 3rd hours respectively and 3 Yuan
per hour for fourth hour onwards for 24 hours
 Little theft or vandalism of bikes owing to the
provision of black listing the errant commuters and
denying them access to the facility for life
 Hiring hassles reduced owing to installation of
POS system that enables ending rental by parking
at the stall, swiping the transportation card over
the bike itself and walking away
3b
© 2011 Intellecap. All rights reserved
Public Bike Sharing services providers and business models
44
• The Public Bike Sharing facilities May be provided by Advertising Agencies (no example in Asia); Public Transport
Agency (example-Hangzhou Public Bicycle, China); offered by the Local Government and Public Authority (example
– Nubija in Changwon, North Korea); For Profit Agency (example – proposed in Pune, India) and Non Profit
agencies (example – Wuhan Public Bicycle, China)
• The main sources of revenue for all providers comprises of member and non-member user charges and advertising
on the bikes, bike sharing stations, billboards and street furniture. Models run by public transport agencies depends
additionally upon government subsidies, the ones run by local government and public authority additionally depend
on Municipality funding and the ones run by non profits additionally depend upon loans from banks, public-Private
partnership funding and local funding.
Provider Standard Operating Model
Advertising Agency Provide bike sharing services in lieu of rights for advertising on bill boards, street
furniture, etc.
Public Transport agency Provide bike sharing under guidance of public authority for enhancing the public
transport system
Local Government and
public Authority
Directly design and operate a bike sharing scheme or purchase it from other agencies
providing these services
For Profits Provide bike sharing with minimal government involvement
Not for Profit Provide bike sharing services under support of public agencies or city councils
3b
© 2011 Intellecap. All rights reserved
Public Bike Sharing problems and solutions (Good practices)
45
Problems experienced Solutions devised
Bicycle theft and
vandalism
Third generation bike sharing programmes have introduced smart cards that have significantly reduced the
problem of theft and vandalism as the subscriber anonymity is no more an issue. Technologies like global
positioning systems and radio frequency tracking greatly help reduce theft but tend to increase programme
implementation costs. Programmes are also employing membership based lending process to reduce theft.
Hangzhou bike sharing employs inexpensive bikes (400 RMB) to avoid theft. A high density of bicycles that are
available for free in the 1st hour help obviate the need for stealing the bike. The fourth generation bike sharing
programmes are planning to introduce robust bicycles necessitating low maintenance cost and strong locking
systems to deter theft/vandalism.
Bicycle redistribution Efficient redistribution of bicycles to locations with high demand, once the bicycle has been used, improves the
efficiency of the programme. Hangzhou bike sharing programme uses 20 natural gas fuelled trucks for bicycle
redistribution. Further, attempts are being made to equip redistribution vehicles with computers to provide online
information to the drivers on the location wise bicycle shortage and station crowding. This would lead to fourth
generation bike sharing programmes that are “Demand-responsive Multi-modal systems”
Information System Third generation bike sharing programmes are providing the users with internet based real time information on
availability of bikes and location of bike sharing stations, thereby helping it make more user friendly and
therefore their use needs to be encouraged.
Insurance and liability
consideration
Hangzhou bike sharing system provides insurance against any injury that occurs through their programme.
Insurance raises the cost of providing the services but the accident data indicates low risks that may keep the
premiums low as well.
Prelaunch
consideration
Success of bike sharing programmes is linked to its ability to meet the needs of its target segment before and
after deployment. As bicycle availability prediction is a complicated issue to address, programmes have
responded by deploying mobile bike stations, that may be relocated based on the usage pattern. Pre launch
marketing and appropriate pricing too have been identified as critical factors that contribute to the success of
business models.
3b
© 2011 Intellecap. All rights reserved
Promoting bike ownership programs
46
Rationale for promoting bike ownership programme
 Promoting bike ownership programme is relevant in African context where modal share of cycling is insignificant
 Anglophone Africa is better placed than the francophone Africa in terms of modal share of cycling
 Promoting bike ownership is necessitated by the fact that African cities have a relatively weak bicycling culture
 To facilitate door to door trips for short to medium distances (upto 8 kms)
Do’s from the Afribike Programme
 Carefully targeted bike ownership programme can create demonstration effect that may lead to increased modal share of cycling in cities
 Arrangements for supply of good quality affordable cycles would help the programme
 Capacity building at cycling skills of the prospective commuters using bicycles as a mode of transportation would help the uptake of the
programme
 Capacity building of vendors who may provide maintenance services and helping strengthening the maintenance infrastructure would
help the sustainability of the programme
 Institutionalizing the programme would help it to sustain over a period of time leading to continued effort at promoting cycling by
promoting bike ownership programme
Don’ts from Shova Kalula
Gender mainstreaming for better uptake , Decentralized programme implementation to ensure that the responsibility is distributed across
institutions and their respective suppliers and jettisoning the idea of importing in favour of indigenous production of bikes so that outreach is
not deterred by non availability of spare parts
Successful example (Johanessburg and other cities, South Africa)
From 1995 to 2000 ITDP funded its project named Afribike which went on to become an independent organization. Afribike trained
numerous children and women in riding bicycle, maintaining and operating it while providing the same to the beneficiaries. The Department
of Transport in South Africa realized that it was cheaper for them to offer bikes than school buses. Therefore, they started the programme
called Shova Kalula to upscale the bicycle use across various cities in South Africa. In 2000, ITDP entered into a partnership with PEER
Africa and B. Slotar & Sons, to import continuous shipments of new, specially-designed low cost bicycles and distribute them through
PEER's Eco-Housing dealerships and local bicycle retailers. Large employers and public agencies are participating with payroll deduction
financing. The demonstration effect created by the programme led to the rise in modal share of bicycling in many cities of South Africa.
3c
© 2011 Intellecap. All rights reserved
Promoting cycling in regions with low/negligible modal share
47
 A plethora of institutions have come up with an objective to promote cycling in “cycling poor” regions like Africa
 The relevance of promoting cycling in these regions comes with the objective of promoting low cost mobility (personal as well as public
transport) and environment conservation
Examples of cycling promoting institutions in Africa19
 Pan Africa Bicycle Promotion Network (PABIN) – Promoted by International Bicycle Fund, the organization works to ”improve
opportunities for bicycle transport and low-cost mobility to improve productivity, the quality of life and the environment in Africa”. Apart
from running a e mail discussion group on bicycles and non motorized transport, it also provides information on various other network
members active across Africa for promotion of cycling.
 Bicycle Aid – Provides a list of organizations that recycle bicycles to various projects across African countries
 Cycling Out of Poverty – It helps local African NGOs to start a bicycle micro credit programme with funding
 Bamboosero – Ghana based organization working on producing and promoting bamboo bikes
 Mozambikes – They not only produce bicycles but also run a not for profit that purchases bicycles at costs and distributes it across
Mozambique
 Qhubeka – A South Africa based organization that runs a programme that helps african children to grow trees to earn a bike
 Jugendhilfe Ostafrica – A Germany based NGO promoting the use of bikes in Uganda
 Zambikes – Zambia based organization involved in production of Bamboo Bikes
 Bicycling Empowerment Network – Based in Cape Town, South Africa, the organization aims to adress poverty and mobility through the
promotion of bicycles in all its forms. It “imports used bicycles from overseas and distributes them to low income areas, trains recipients
of the bikes in safety and maintenance, establishes Bicycle Empowerment Centre's (BEC's) and encourages cities to implement bicycle
planning and infrastructure. BEN also assists the planning of events to help promote the use of the bicycle as a form of mobility”
 Banboo Bike Project – Based out of Kumasi, Ghana, the project that began in 2007 with seed funding from the Earth Institute, has
adapted its bamboo bike design to suit the road conditions of Sub-Saharan Africa, has established systems to utilize local raw material,
management and labour and in 2010 became the first organization in Africa to run a bamboo bike production facility. Working with the
Earth Institute‟s Millennium Cities Initiatives (MCI), the programme is now in process of scaling up from feasibility project to routine
production.
3d
© 2011 Intellecap. All rights reserved
Organizing the paratransit sector is a win-win for the
entrepreneur and the consumer (Ecocabs India)
Organizing the sector would streamline the paratransit operations which
would not only improve the lifestyle and earnings of the operators but also
would improve the commuter experience
Case Study: Ecocabs, Fazilka, India:
The Model:
The Ecocab project is a “dial a rickshaw” service which is operational in a
small town in Fazilka, India. The commuter needs to dial his zonal call center
and a rickshaw would be available at her doorstep within 10-15 minutes.
Currently they have 5 call centers operational in various zones in Fazilka.
The call center is run by a not-for-profit organization called Graduates
Welfare Association, Fazilka (GWAF). The model has been replicated across
many other cities of The Punjab.
Benefits to the rickshaw puller:
 Health: The organization tied up with local doctors to help provide free
medical consultation to the Fazilka rickshaw pullers. They also tied up
pharmacies in the area to provide medicines at discounted rates
 Education: The organization provides free school bags to all school
going children in the Ecocab owner families
 Legal aid: The organization tied up with lawyers in the Fazilka area who
provide free legal services to the rickshaw pullers
 Lifestyle: The Ecocab rickshaw pullers operate out of a shed which
provides them shade and has television sets for entertainment. Now the
rickshaw pullers do not have to brave the vagaries of weather
48
Benefits to the society:
 Organized informal public transport service
 Reliable and safe service at the door step
 Ecofriendly mode
 The new design of the rickshaw is relatively more
comfortable and provides more luggage space than
before
4a
© 2011 Intellecap. All rights reserved
Organizing the paratransit sector is a win-win for the
entrepreneur and the consumer (Go-Jek Indonesia)
Case Study: Go-Jek, Indonesia:
The Model:
The motorcycle taxi is called Ojek in Indonesia. Go-jek is a call center based
service that helps organize the Ojek operations. The unique aspect of the this
service is the diversification in services provided in order to increase the
earnings of the Ojek drivers and improve their life styles
Diversified service offerings:
 Basic transport service: The go-jek drivers are scattered across various
locations and are coordinated through a GPS tracking system and provide
basic commuting services
 Instant courier: With most cities struggling with the issue of congestion,
the Ojeks are a good mode for fast commuting in cities and can help with
on-time deliveries.
 Corporate services: The operators of the service design customized
services to corporates from whom they can generate repetitive business
 Shopping and Delivery: This unique service helps customers buy basic
groceries and other services even while sitting at home. Go-jek has tied
up with 12 retail stores and as soon as the consumer places an order they
pick up the product and deliver the same
49
Innovative service offerings provide better lifestyle for
the operators
Note: There are other similar models such as G-Auto, Ahmedabad, dial-a-
rickshaw, Gurgaon that have not been covered in this report
4a
© 2011 Intellecap. All rights reserved
Access to finance to enable ownership could increase
earnings for paratransit operators in long run
Drivers who earn the vehicles and drive it themselves earn the most and
providing access to finance to paratransit drivers would improve their
lifestyles and increase their daily earnings
Case Study (Rickshaw Bank, Guwahati, India):
The cycle rickshaw, a non-motorized means already has its limitations as it
cannot be used for trip lengths greater than 3kms and it is time and energy
consuming. In addition, most rickshaw pullers take the rickshaw on rent as
they cant afford to buy and rickshaw and end up paying 15% of their daily
income on rent. Rickshaw bank an innovative loan product run by Center for
Rural Development (CRD) a not for profit in Guwahati provides loan for the
rickshaw pullers to buy their own rickshaws.
The product:
A group loan product given to groups of 5 members each
Capex: INR 13000 (which is 60% higher than a traditional rickshaw as CRD
sells a specially designed rickshaw which has more space for commuter
seating, its easier to ride and has advertisement space)
EMI per day: INR 25 per day (same as daily rent)
Term: 20 Months
After 20 months the daily earnings of the rickshaw driver would directly
increase by 15% as he would earn the vehicle then
50
‘Ad Space’ an alternate revenue source:
Having ad space behind the vehicle can be a very good
alternate revenue source. Rickshaw bank (CRD) is
currently using this space to promote their sponsors . In
large cities this space could potentially generate
additional income not only for the operators but also to
the model operators (such as Fazilka etc) who can
sustain their operations through the revenues generated
through advertisements
4b
© 2011 Intellecap. All rights reserved
Few best practices in city management that would help plan
and implement things better
 5a. Unified Metropolis Transport Authority (UMTA) : Multiple agencies being responsible for various aspects is a
big challenge that many cities face today. With extending metropolitan areas and increasing sprawls in most big
cities it becomes very critical to have a unified authority that takes care of various transport related planning be it land
use planning or mobility planning. The initiative of forming unified transport authorities have been taken up in various
Indian cities such as Hyderabad, Bangalore, Delhi etc
 5b. Urban Transport fund: Not just having a unified body it is also critical that the body has enough funds to fund its
expansion plans etc. Developing transport infrastructure is not a one time activity and as it needs repetitive
investments it would be critical to setup a dedicated fund where all the revenue generated through transport related
activities such as revenue through parking, advertisements, real estate space etc go into the fund and they are
further invested into public transport development such as BRTs and metros. As per a primary interview with an
expert from ITDP the city of Chennai has a potential of raising 700 crores rupees just by collecting parking fees and
creating a fund, the money raised is 7 times the money spent on subsidizing the bus service, this way giving
subsidies would become sustainable as car users are charged and the benefits are cross subsidized to public
transport users
51
Case of the Hyderabad Metropolitan Development Authority (HMDA):20 The HMDA was setup in the year 2008
which also has to establish the UMTA in Hyderabad. As per the proposed plan the UMTA would constitute various heads
of departments ranging from the municipal corporation to the head of APSRTC (the institute that runs the bus service) to
various experts in the transport space. The committee has a special fund allocated for development, an initial seed fund
of USD 20 million was allocated to the committee and the committee would be responsible for planning and
implementation of various activities such as CNG for paratransit, setting up SPV for BRTS etc
5
© 2011 Intellecap. All rights reserved
Agenda
52
Executive Summary
Context and Key Definitions
Current state of urban transport
Public Transport
Paratransit
Walking and Cycling
Issues for Entrepreneurs and service providers
Solutions to solve urban transport issues
Deep Dives
Delhi, India
Manila, The Philippines
Nairobi, Kenya
Annexures
© 2011 Intellecap. All rights reserved
The urban poor largely resort to walking/cycling, followed by
public buses which are affordable
53
 National Capital Region of Delhi does not
have an effective and unified urban
development authority
 The study focuses mostly on National
Capital Territory which does not include
areas falling in Haryana, UP and Rajasthan
26 4 39 9 22
Modal Share of National Capital Territory (NCT) of Delhi5
Buses Metros Walking and Cycling 2 Paratransit Personal vehicles
General
 The NCT region had a population of 11 million with a population density of 11,297
persons per km² in 2011
Public Transport
 In Delhi public transport trips are multi modal , usually involving walking/cycling at
either end of the journey to reach the final destination
 According to a Transport Demand Forecast study commissioned by DMITS on
behalf of Transport Department, the NCT requires an additional 148.5 kms of
Metro rail, 40.3 kms of Mono rail (currently there is no mono rail in Delhi) and 394.9
kms of BRT
Paratransit
 The major modes deployed under the category are 3 wheelers (shared and non
shared) autos, taxis and cycle rickshaws which together have a modal share of 9%
 Paratransit is mostly used for feeder purposes and are not affordable to the poor
 The Delhi government has succeeded in converting the entire paratransit fleet to
run on Compressed Natural Gas (CNG)
Walking/cycling
 Delhi has the second highest number of walk trips among Indian cities after
Mumbai at about 5 million trips and has the highest number of cycling trips at 2.8
million trips among Indian cities
 Walking and cycling has not received proportionate attention from the policy
makers, planners and implementers
Focus area
for this study
Note: Most of the data in this section has been
compiled through interviews with list of key
informants (Refer to Annexure 3)
© 2011 Intellecap. All rights reserved
In Delhi nearly 2.2 million people are below the poverty line
($0.45 per day), constituting 15% of the total population
 The per capita income of Delhi was INR 1.17 lakh in 2009-1021
 Monthly Per Capita Expenditure (MPCE) as per the survey
conducted by National Sample Survey Office (NSSO) 66th round in
urban Delhi was INR 2905 in 2009-10
 The Gini coefficient of income in urban India is on the rise as it has
gone up by 15% from 0.39 to 0.43 between 1994-95 to 2004-05
 The Planning Commission of India estimates the monthly per capita
poverty line for urban Delhi to be INR 309.48 in 1993-94, INR 454.11
in 1999-2001 and INR 612.91 in 2004-05
54
The informal settlements of Delhi
In 2001, nearly 1.8 million people lived in the slums of Delhi.
The 2011 slum population figures are yet to be released but
despite a broadening of slum definition, it is likely either to
stagnate or increase only marginally owing to resettlement
program
Characteristics of Delhi’s urban poor
The poor of urban Delhi often engaged in casual labour,
usually migrants from the rural landless or small and marginal
farmer households, with low or no education or skills
Commuting pattern of the urban poor
 In 2011 the employed poor of Delhi mostly walked (49%),
cycled (15%) or used bus based public transport (23%)
 In 2011 the unemployed poor of Delhi mostly walked
(87%), cycled (2%) or used bus based public transport (8%)
1.5
1.1
2.2
0
0.5
1
1.5
2
2.5
1993-94 1999-2000 2004-05
People below poverty line (in Millions), (% of
population)22
(16%)
(9%)
(15%)
© 2011 Intellecap. All rights reserved
A relatively streamlined city management structure; better
coordination between union and state governments required
55
Ministry of Urban Development
(MoUD), Government of India
(GoI)
Government of National
Capital Territory of Delhi
(GNCTD)
National Capital Region
Board (NCRB)-An
autonomous body of GoI
under MoUD
Delhi Development Authority
(DDA)-An autonomous body of
GoI under MoUD
Delhi Integrated
Metropolitan Transit
System Limited (DIMTS),
a JV between GNCTD
and IDFC
Delhi Transport
Corporation (DTC)
Department of
Transport
 Commissioner
of Transport
 State Transport
Authority
 Mass Rapid
Transit System
Delhi Metro Rail
Corporation (DMRC)-A
Joint Venture (JV)
between MoUD and
GNCTD
Refer to Annexure – 4 for functions of some of the agencies mentioned above
 Most of the agencies have their functions, jurisdiction and powers defined through various Acts and statutes with little overlap
 The Delhi Municipal Corporation has recently been subdivided into three Municipalities of North, South and East Delhi
 In the New Delhi parliamentary constituency of NCT, New Delhi Municipal Council (NDMC) inter alia looks after the building approval,
estate commercial, estate housing and enforcement, each of which impact the land use and urban transport planning
 DIMTS has been set up as a special purpose vehicle to tackle the problem of ineffective transport delivery and to provide expert
services in the field of urban transport to GNCTD
 NCRB was constituted under the NCRPB Act, 1985. Its key rationale was to promote balanced and harmonized development of the
Region, and to contain haphazard and unplanned urban growth by channelisig the flow and direction of economic growth along more
balanced and spatially-oriented paths
 Delhi Police comes under the jurisdiction of Ministry of Home Affairs, GoI
Entities Impacting the Urban Transport Landscape in Delhi
© 2011 Intellecap. All rights reserved
In Delhi buses are more accessible and affordable than metros;
paratransit modes are not affordable for the urban poor
56
15
10
20
0
10
20
30
Metro Train (AC) Bus (No-frill) Bus AC
Cost for 10km trip (INR)23
5
25
38.5
64
0
20
40
60
80
Bus (No-frill) Cycle
rickshaw
Auto rickshaw Metered Taxi
Cost for 5km trip (INR)24
Delhi has great public transport infrastructure with various modes
such as high speed mass transit metros, no-frill buses, low floor air
conditioned buses etc. Each mode solves a particular purpose:
The Delhi Metro:
 The Delhi metro is the largest metro rail project in India with 6
lines covering 190km stretch
 It is the fastest and most effective means of transport for long
distance trips, especially commuting between Delhi and its
suburban satellite cities such as Gurgaon and Noida
 On an average a ride in a metro would cost INR 1.5 per km, with
average trip lengths of 10km in Delhi it would cost INR 15 per trip
or INR 30 per day
 With an assumption that no household should spend more than
10% on travel the Metro is an affordable mode only for
households who earn more than INR 18000 per month ($12 per
day) (assuming two people in a family travel)
The Delhi buses:
 No-frill buses cater to the poor, these buses cost on an average
INR 1 per km, which means it would cost INR 20 per day for a
round trip and INR 600 per month for the commuter.
 These buses are affordable means for all families with household
income greater than INR 12,000 per month ($8 per day)
(assuming two people in a family travel)
 The Delhi government also provides a monthly bus card for
families below the poverty line by which one person in a family
can travel any distance for only INR 500 per month
 These cards are not affordable for the poor because they do not
possess that surplus amount as most are daily waged workers
There are many paratransit modes in Delhi, such as the metered
taxis, auto rickshaws and the cycle rickshaws. Most of them work
on fixed meter rates (other than the cycle rickshaw) and the prices
do not cater to the poor. These modes are for the higher middle
class or the more affluent. For example a 5km ride in an auto
rickshaw is almost 2 times what 15% people below the poverty
line earn per day
Between the buses and metros, the buses are more accessible.
The distance between each metro station is 1-2kms whereas the
distance between bus stations is 500m-1km
© 2011 Intellecap. All rights reserved 57
Delhi BRT lane is not of a substantial size to show the benefits to
the commuters; negative media hampered its further growth
Context:
Delhi has a modal share of around 30% for public transport and
buses contribute the most to the high modal share. With constantly
increasing modal shares of private vehicles such as cars and
motorbikes the congestion levels in the city are also rapidly
increasing. With this scenario it becomes important to implement a
right of way for buses and rightly so the government of Delhi
implemented a pilot BRT line of 5.6 Kms from Chirag Delhi to
Adarsh Nagar. This system is an open BRT system with the
segregated lane provided for all buses (not just for special BRT
buses) plying in the route
Impact:
The Delhi BRT carries on an average 12,000 passengers / hour in a
single direction which is high given its size but the average speed of
the buses is only 13kmph which is low when compared to most
BRTs across the world.
Fatalities and the negative media:
15 fatal accidents happened on the BRT lane in its first year of
operation and this got a lot of negative media attention. It also
became a major campaigning point for the opposition during the
Delhi elections. With political pressures and constant media
negative reports the BRT project took a back seat and didn‟t expand
beyond the 5.6km stretch in Chirag Delhi. Indian Institute of
Technology, Delhi professors, (designers of the Delhi BRT) ensured
that rights steps such as building speed breakers and implementing
effective traffic management systems were taken in the subsequent
years which brought the fatalities to zero in recent years
The central BRT lane was built to end Bus-cyclist conflict which
was the major reason for fatalities earlier before the BRT.
Currently the BRT corridor in Delhi also has a separate cycle lane
which is world class and the central lane removes the conflict
completely. But the central bus lane means that 100% of the
passengers using the Bus need to cross certain part of the road
with mixed traffic in it and hence providing better pedestrian
crossing infrastructure such as over bridges or subways would
have been more effective . Some of the transport experts say that
the major problem with Delhi BRT is not the crossing area but it is
with passengers entering the corridor in non terminal areas
‘BRT is not pedestrian friendly as it is in the middle of the road. If
it was on the left people will get out on the left directly on to the
walking/cycling path. Currently all people who get out of the bus
have to cross the road as it is in the center’ – a bus conductor on
the Chirag Delhi BRT
© 2011 Intellecap. All rights reserved
A comprehensive NMT lane and pedestrian paths make the Delhi
pilot BRT corridor an inclusive corridor
The comprehensive NMT lane in the BRT corridor has been
specially designed for high number of cycle users in Delhi. Currently
1200 cyclists use the lane in peak hours which is second only to
Chinese cities. The cycle lane has been designed by keeping the
requirements of the cycle rickshaw drivers and it is wide enough to
comfortably accommodate the rickshaw. These design elements
make the Delhi BRT corridor not only friendly to the bus commuters
but also to the NMT users who together constitute to over 44% of
modal share in Delhi
The ‘Grade A’ pedestrian facilities have set high standards for
other BRT corridors in India. Wide and comfortable pedestrian ways
have been built on either side of the road in the BRT corridor
Accommodating hawkers: The BRT planners have surveyed
hawkers and understood their needs before planning the BRT. They
have left green spaces on the corridor as legally they cannot provide
space for hawkers (because currently there is no mechanism to
allocate spaces). In India the policy makers are hostile towards
Hawkers. Currently many hawkers use the BRT corridor without
actually blocking the pedestrian way
58
With many more corridors planned and feasibility studies
completed the Delhi government is unable to start the projects
because of the initial negative media attached to the pilot
corridor. With the success of the Ahmedabad BRT there might
be a positive impact on the Delhi government officials to
implement the Delhi BRT in a more optimal scale
© 2011 Intellecap. All rights reserved
Delhi has a high modal share, 44% of non motorized modes, but
the environment is not conducive for commuters
59
55.71
44.29
Motorized Modes
Non Motorized Modes
34.67
4.46
5.16Walk
Cycle
Cycle
rickshaw
Modal shares of Motorized and non-motorized modes5
 Delhi has a very high modal share of non motorized modes.
Cycles and cycle rickshaws have a modal share of around 10%
while walking has a modal share of 35%
 Inadequate infrastructure for pedestrians and cyclists makes it
very difficult for commuters, as do blockages such as hawkers
and parked cars on pedestrian and cycle ways
 Over 66% of all fatal accidents involved a non motorized mode
user, around 53% of them were pedestrians25
 Very little is being done to improve the infrastructure for NMT
users. A 680km stretch of walking and cycling paths have been
planned along with the BRT system but its implementation
depends on the implementation of BRT. Currently the
expansion of BRT network has been stalled because of all the
negative media attached to the pilot corridor
There are a few organizations that have implemented public bike
sharing (PBS) pilots:
Delhi Cycles Pvt Ltd. - Metro Cycle Feeder program:
 The company has a pilot near the Rohini Metro station
 Currently this service helps passengers cover home/office to
metro trips or vice versa
 This service currently doesn‟t cater to the poor, as most
commuters using the metro are people from the middle class or
above. With more affluent users using the system it would
gather the policy makers attention towards providing better
infrastructure for cycling
 The fares a quite affordable it costs INR 3 for 15 minutes
(assuming most short distance trips take approx. 15mins)
Delhi Integrated Multi-Modal Transit Sytem (DIMTS) – Delhi
BRT PBS pilot:
 DIMTS has implemented a PBS system on the BRT corridor, as
the BRT corridor has not yet scaled up to an optimal level the
usage of this system is also very low
 The cost of hiring a cycle is INR 10 per hour, for the first time
the user would need to produce an identity proof and deposit
INR 100 to get a card done but later on he can just produce his
DIMTS card to hire a cycle
 The infrastructure on the BRT lane for cycling is world class
(see next slide), if BRT scales up this model would have a huge
impact on attracting more citizens to cycle
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities
Catalyzing the New Mobility in Cities

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Catalyzing the New Mobility in Cities

  • 1. © 2011 Intellecap. All rights reserved www.intellecap.com Catalyzing the New Mobility in Cities 30th March 2012
  • 2. © 2011 Intellecap. All rights reserved Agenda 2 Executive Summary Context and Key Definitions Current state of urban transport Public Transport Paratransit Walking and Cycling Issues for Entrepreneurs and service providers Solutions to solve urban transport issues Deep Dives Delhi, India Manila, The Philippines Nairobi, Kenya Annexures
  • 3. © 2011 Intellecap. All rights reserved 0.35 1.16 0 0.4 0.8 1.2 1.6 Asia Africa Cost of 10km trip using no-frill public transport (USD PPP)1 Urban poor commuters mostly walk/cycle or use affordable public transport; lack of affordable options and poor infrastructure makes commuting tough  The poor resort to walking or cycling for short distance trips, though sometimes walk up to 10-20kms everyday in cities with poor transport options . The modal shares of walking/cycling in the low income section is very high (It is in between 50-60% in cities with good public transport and in cities with poor transport facilities it is over 90%) − Poor infrastructure makes the environment not so conducive for the pedestrians and cyclists to use − Majority of the fatal accidents involve non-motorised transport (NMT) users 3 Extreme poor (below poverty line) Low income Travel Behavior in cities with no affordable public transport modes Irrespective of the affordability of public transport, the majority of the poor who fall below the poverty line walk or cycle to access goods and employment opportunities. As they cannot afford transportation they live in informal settlements close to their employment opportunities by compromising on proper housing, sanitation etc. In cities with no affordable public transport modes the low income commuters either walk or cycle and live in informal settlements Travel behavior in cities with affordable public transport modes In cities with affordable public transport modes some low income commuters use public transport by staying in formal settlements far away from their work place. Others live in informal settlements and hence walk/cycle  Long distance trips are generally done using public transport modes such as metro, buses, ferries etc. In cities with effective public transport systems, the modal share of public transport options is high even amongst low income commuters: − The poor use no-frill or basic public transport services, not use luxury services such as high speed AC metros, buses etc. − The poor use buses more than the rail system because buses are more accessible when compared to trains. The trip times in buses are much higher when compared to that in trains because of congestion on roads − No-frill or basic public transport modes are 3.3 times less expensive in Asia when compared to Africa 3.3x
  • 4. © 2011 Intellecap. All rights reserved Paratransit modes are less affordable for the urban poor, but generate livelihoods for 7-20% of families in major cities  In cities where public transport infrastructure is weak long distance trips are done using primary paratransit modes such as Matatus, Danfos, Jeepneys etc. − Primary paratransit modes are 1.5 times more expensive than no-frill or basic public transport modes in both Asia and Africa − Over speeding and crowding makes commuting in paratransit modes very unsafe. The high number of old vehicles being used as paratransit has adverse effects on the environment (there are over 60,000 old (>30 years) Jeepneys that ply in the metro Manila  Paratransit feeders are used for short distance commuting, generally modal shares of feeders in the low income sector is very low − Feeders are not affordable across Asia and Africa. A 3km trip in a feeder costs more than what it costs for a 10km trip using public transport modes across Asia and Africa2 4  Paratransit operations generate livelihood opportunities for many, although the sector is extremely unorganized  Amongst the owners, drivers, support staff (such as conductors, etc.) and other stakeholders involved, the drivers and the support staff members are the most vulnerable  There are three ownership structures possible, based on the relationship between the driver and his owner. The driver can either work on a fixed salary, take the vehicle on rent and make profit, or own the vehicle  Drivers who own the vehicles earn the most and the drivers who operate non-motorized modes (such as cycle rickshaws) are the most vulnerable  Most drivers have long work days as they end up working for 14-18 hours in a day. This also leads to rash driving and over filling the vehicles which makes commuting in paratransit modes an unsafe and unpleasant experience 0.35 0.52 1.16 1.64 0 0.6 1.2 1.8 Public transport (Asia- No-frill services) Primary Paratransit (Asia) Public transport (Africa- No-frill services) Primary Paratransit (Africa) Cost for 10Km trip (USD PPP basis)3 1.5x 1.5x
  • 5. © 2011 Intellecap. All rights reserved Other key trends in funding, private sector activity & city plans  Across Asia and Africa, transport jurisdiction and city management structures are fragmented − This makes policy change and implementation tougher − Very few cities have comprehensive city-level plans for urban transport − Often, plans are designed for car users and very few cities have inclusive plans which cater to all commuters  Rail Mass Rapid Transit (MRT) systems are attracting funding − Cities tend to ignore more optimal solutions such as the Bus Rapid Transit (BRT) for more fancy and cost inefficient rail systems  Green initiatives are increasingly popular, such as eco-friendly fuels. − For example, the ADB is interested in funding a project to convert diesel paratransit vehicles in Manila into electric vehicles  Limited attention to exclusive non-motorized transit (NMT) projects from both city managements and funders − NMT projects are typically implemented along with large projects such as BRT; the World bank is especially interested in promoting BRTs along with NMT lanes  Paratransit remains largely informal; few private sector models exist which help organize the sector − Current models empower the entrepreneur through technologies such as call centers or financial institutions which provide access to finance services to the entrepreneurs 5
  • 6. © 2011 Intellecap. All rights reserved Potential pro-poor public transport solutions  Constituting a unified body (an urban transport authority) to handle urban mobility issues in a city. With the city boundaries increasing rapidly and the area moving beyond the boundaries of single local government it is import to have an authority to handle the entire metropolitan area  Creating a separate transport fund to help cross subsidize various services in transport; ex: parking fees can be used to subsidize public transport fares or to increase the network  Deploying Public Private Partnership (PPP) models whenever necessary to scale transport operations. When privatization is being promoted it is important to promote limited competition. This can happen by keeping high barriers of entry such as high fleet size, selection based on company that promises lowest fare etc.  Promoting efficient public transport systems which are accessible, affordable and that reduce congestion : – Create public transport for all; i.e. it is not only important to have affordable no-frill solutions for the poor but it is also important to have luxury services for the more affluent in order to reduce congestion in cities and improve travel times for those using public transport – Develop rail based rapid transit systems for large cities such as Delhi and Manila which have the potential to attract lot of commuters that use private vehicles. These modes currently do not attract the poor as they are relatively more expensive and are not accessible as buses but would indirectly reduce the congestion on roads which would make commuting pleasant for bus users – Implement „Right of way‟ for buses by building BRT corridors which drastically reduce the travel time for bus commuters and improve efficiency; for the cost of building a kilometer of a metro line, over 12kms of BRT lines can be built – Offer subsidies and innovative pricing mechanisms for sensitive groups. For example most transport services across India provide subsidies for school going children, elderly citizens etc. Some governments also provide subsidies for the poor. 6
  • 7. © 2011 Intellecap. All rights reserved Paratransit solutions to improve commuter & driver experiences  Regulate paratransit in cities with weak public transport: – Enforce regulated fares across the city for all paratransit operators. If not regulated, operators over charge the commuters based on demand. While regulating the fares the interests of the service providers (who are often poor) also must be kept in mind – Promote the usage of high capacity vehicles, especially in high traffic roads – Design comprehensive route plans based on traffic demand especially for primary modes in the city; multiple switches between vehicles has been identified as an issue which makes commuting less affordable for the poor – Implement robust safety and emission control mechanisms  Organize the sector: Very few entrepreneurs have come up with solutions to organize the space there is still a huge need for organizations that can streamline the operations by keeping the commuter and service provider needs in mind. Some examples include G Auto, Fazilka, Go-Jek etc. which provide technological support (such as call centers) to paratansit operators or take care of other benefits such as healthcare, education, etc.  Provide access to finance services: As the drivers who own the vehicles earn the most perhaps providing access to finance for drivers to buy their own vehicles can be a good solution to improve their earnings in a longer run. Currently such models are seen in non- motorized modes which have very low capex and financial institutions typically do not require collateral to provide such loans. Rickshaw bank in Guwahati, India is one such example which uses the group lending concept to give loans to cycle rickshaw drivers  Use advertising as an alternate revenue source: This is a largely untapped opportunity. Given the right planning paratransit modes can be used as an effective mode to publish local advertisements. This in turn can generate additional revenues to the driver. Currently in most cities the advertising policies are not conducive for ads on paratransit or public transport modes 7
  • 8. © 2011 Intellecap. All rights reserved Potential pro-poor solutions to improve walking and cycling 8  Build appropriate infrastructure − Create dedicated infrastructure for walking, cycling and other non motorized transport to support poor commuters − Allocate adequate budget based on infrastructure development/strengthening plan, aligned with policy commitments − Move from “tiny” pilots to “substantial” ones that have a modicum of scale and thus demonstration effect; include in city plans − Integrate the creation/strengthening of walking/cycling infrastructure with BRT wherever the latter is being implemented coupled with efforts at keeping the implementers alive to the need for quality walking cycling infrastructure with BRT − Give priority to strengthening walking/cycling infrastructure in areas (residential, commercial, educational areas and around transport terminals) where the city management/authorities are more amenable to change − Advocate for recasting unfavorable regulations if they come in way of improving walking/cycling infrastructure − Improve approach and manage externalities better by: o Promoting walking/cycling as both pro poor and green agendas simultaneously o Improving externalities such as law and order and street lighting o Developing and implementing a sensitized hawker‟s policy to ensure their sidewalk presence without creating obstructions  Promote Public Bike Sharing (PBS) − Attract the affluent and the influential people of the society in order to influence the policy and decision makers − Do not wait for the infrastructure to happen before bike sharing programme is initiated − Plan exposure visits for policy makers, planners and implementers to successful initiatives at scale like Hangzhou PBS system − Raise awareness on biking; organize events and publicize widely  In Africa, promote the availability of bicycles − Waive /reduce import duty on bicycles − Innovate new models of bicycles that can be locally manufactured − Build commuters and service provider capacities to cycle, build and maintain cycles
  • 9. © 2011 Intellecap. All rights reserved Agenda 9 Executive Summary Context and Key Definitions Current state of urban transport Public Transport Paratransit Walking and Cycling Issues for Entrepreneurs and service providers Solutions to solve urban transport issues Deep Dives Delhi, India Manila, The Philippines Nairobi, Kenya Annexures
  • 10. © 2011 Intellecap. All rights reserved Context and scope of the project One of the key challenges for urban agglomerations or cities have been to improve the mobility for the urban poor, who are the most marginalized in the face of rapid urbanization, population explosion and congestion due to the increase in the number of private vehicles. In this regard Intellecap has been mandated to understand how to improve mobility for the urban poor, by identifying innovative business/service models, good practices and policy level interventions that maximize mobility for the urban poor across Asia and Africa. As part of the study we looked at innovations in the areas of public transport, paratransit and walking and cycling across the Asian and African cities and identified best practices and solutions that would improve the value proposition for the urban poor commuters and entrepreneurs. 10 Impact of urban mobility on the poor Helps the poor consumer access jobs and other services Provides employment opportunities for the urban poor (For ex: Drivers, conductors, entrepreneurs etc.)
  • 11. © 2011 Intellecap. All rights reserved Key Definitions  Public transport: Government run transportation systems for the public, usually based on high capacity vehicles such as trains, buses with a capacity of more than 40 seats  Paratransit: Informal, privately run transportation systems for the public, such as Jeepneys (Manila), Rickshaws (Dhaka), etc.  Primary Mode: Any transportation mode (public or paratransit) which is majorly used for long distances (>8km length) commuting  Feeder : Modes which connects people to the primary modes. Generally the feeders are privately run paratransit modes . The average trip lengths assumed for feeders is 3-8 kms  Modal Share: Percentage of trips using a particular type of transportation to total number of trips Value Propositions for the poor commuters:  Affordability: The affordability is calculated as the ratio of monthly expenditure on a mode of transport to the average income (per capita) in the city  Accessibility: Degree to which the transport mode is available when needed based on anecdotal and secondary evidence  Other value propositions such as safety, trip time, comfort etc. were also taking into consideration for analysis 11
  • 12. © 2011 Intellecap. All rights reserved Agenda 12 Executive Summary Context and Key Definitions Current state of urban transport Public Transport Paratransit Walking and Cycling Issues for Entrepreneurs and service providers Solutions to solve urban transport issues Deep Dives Delhi, India Manila, The Philippines Nairobi, Kenya Annexures
  • 13. © 2011 Intellecap. All rights reserved The urban poor mostly use public transport, walk or cycle 30.6 50 23 66.9 36 64 2.5 14 13 0 20 40 60 80 100 120 Mumbai Bangkok Delhi Modal shares of low income commuters4 Public transport Walking/Cycling Other Modes 13  Long distance trips are generally done using public transport modes such as metro, buses, ferries etc.  In cities where public transport infrastructure is weak long distance trips are done using primary paratransit modes such as Matatus, Danfos, Jeepneys etc.  Paratransit feeders are used for short distances, though the modal shares of feeders among the low income sector is low  The poor resort to walking or cycling for short distance trips, the modal shares of walking/cycling in the low income section is very high
  • 14. © 2011 Intellecap. All rights reserved Most Asian and African cities have weak public transport; paratransit fills the gap left by public transport in most cities  Public transport is relatively more developed in Asian cities when compared to their African counterparts  In cities where public transport is weak, paratransit fills the gap left by public transport. For example: The modal share of public transport in Manila is 14% and that of paratransit is 42% 14 75 57 59 56 50 46 41 30 28 26 21 15 14 14 12 10 9 9 7 4 4 2 1 0 0 6 22 13 9 25 33 18 39 46 36 36 49 25 3 44 27 61 44 70 30 40 26 10 60 13 6 0 0 0 10 30 14 19 6 26 19 0 1 2 3 0 3 0 1 11 5 2 1 16 4 5 28 35 25 5 5 9 4 57 10 18 14 19 32 19 24 3 14 6 29 16 10 14 3 2 10 0 0 0 6 6 9 3 13 7 12 22 42 51 24 40 24 35 19 26 37 61 75 21 0 10 20 30 40 50 60 70 80 90 100 Modal shares across multiple Asian and African cities5 Public Transport (Bus, Metro rail) Bicycle and Walking Motorcycle Private Cars, Taxis Paratransit modes
  • 15. © 2011 Intellecap. All rights reserved Public transport is 3.3 times more affordable in Asia when compared to Africa 15 No Frill services cater to the poor: 0.35 1.16 1.1 0 0.4 0.8 1.2 1.6 Public transport (Asia- No-frill services) Public transport (Africa- No-frill services) Public transport (Asia- Luxury Services) Cost for 10Km trip (USD PPP basis)1  With the exception of cities like Mumbai which have strong no-frill rail networks, the poor mostly use buses for commuting  The modern day metro trains are not catering to the poor both from affordability and accessibility perspective. For example: 77% of the commuters who use the metro in Delhi are people with monthly incomes of USD 3786 or more whereas the per capita monthly income of Delhi is USD 104  On the other hand building efficient mass rapid transit systems on rail is an expensive affair  Buses are more accessible when compared to trains as trains are built for commuting in the heart of the city (where high capacity commuting is required) and most of the poor stay in suburbs  Commuting in buses is relatively more time consuming when compared to trains Policies are in the right direction:  Focusing on luxury public transport for the non-captive users (middle class and the rich) to reduce congestion on most city roads  Some cities have enacted pro poor policies such as subsidies for no frill services  Policy makers have also recognized the importance of giving „right of way‟ for public transport and NMT commuters  Public transport modes can be classified into two broad categories a) no-frill services b) luxury services . No-frill public transport modes are basic services while the luxury services provide value adds such as air condition, comfortable seats etc.  No frill public transport modes are the most affordable public transport modes. No frill public transport modes are 3.3 times more affordable in Asia when compared to no-frill services in Africa ; in fact they are as expensive as luxury services in Asia  Luxury public transit modes (such as low floor AC buses, AC trains and metros) are 3.1 times more expensive when compared to no-frill modes in Asia Poor use buses more than metros, despite higher transit time
  • 16. © 2011 Intellecap. All rights reserved Non compliance of regulations by private bus operators results in bad commuter experience  In some cities bus operations are outsourced to private players who run the fleet on the regulations which are pre determined by the government agencies such as the Road Transport Authority (RTA)  In most cities these private players do not comply with the guidelines which negatively impacts the overall commuter experience. Here are a few issues with privatizing buses. − Overcharging: In some cities the private players do not comply with the fare regulations by the government. For example, in Nairobi, private buses charge higher fares during peak hours. This deters them from using public transport − No Schedule or route planning: One of the main features that differentiates public transport from paratransit is scheduled operations. In most cities private buses do not run on fixed schedules and most of them do not have proper route planning as most of them end up plying in the arterial routes and neglect the internal routes impacting the accessibility of commuters − Over speeding: Oversupply of buses on some roads results in competition between various private bus operators who end up driving rashly to both pick up more passengers and to do more trips. This makes it very risky not only for the commuters traveling in the bus also for pedestrians and other road users. 16 Over supply of buses at a bus terminal in Nairobi Case of blue line buses in Delhi: The Blue line buses were operated by the private players in Delhi. The owner of the bus would take a route license from the government and gave out the bus to drivers on rent. The licenses were not capped and hence there were many buses plying the same route which created a huge demand supply mismatch. This not only encouraged the driver to drive fast to do more trips per day, but also created cutthroat competition among bus operators for picking up more commuters. This made the commuters experience quite unpleasant.
  • 17. © 2011 Intellecap. All rights reserved Primary paratransit modes are more expensive than public transport across Asia and Africa 17 0.35 0.52 1.16 1.64 0 0.4 0.8 1.2 1.6 2 Public transport ( Asia- No-frill services) Primary Paratransit (Asia) Public transport ( Africa- No-frill services) Primary Paratransit (Africa) Cost for 10Km trip (USD PPP basis)2 In cities with weak public transport, paratransit acts as a primary mode Other issues with primary paratransit modes In cities with weak public transport, paratransit acts as a primary mode:  Primary paratransit modes are 1.4 times more expensive than public transport modes in both Asia and Africa  All paratransit modes are no-frill services  The capacity of primary paratransit modes is relatively lower than public transport modes and is one of the reasons why paratransit modes are more expensive Other issues with primary paratransit modes: Low capacity of the mode increases congestion: With rapid motorization, the use of low capacity primary paratransit modes will only worsen the congestion levels in the city. • Congestion a curse to the poor: In cities like Nairobi and Lagos where the price of the Danfo and Matatus fluctuates with the amount of traffic on the road, congestion becomes a curse to the poor. For example in Lagos a peak hour 10km ride in a Danfo would cost 100 Naira, whereas the same distance for a private car owner would cost only 65 Naira (1 liter of petrol). This encourages more cars to come on the road, further increases congestion and impact the poor adversely Use of old vehicles increases pollution: In Lagos, Nigeria the average age of Danfos is 15 years, these are generally used vehicles which are imported from the United Kingdom. Entrepreneurs buy older vehicles because the import duty on older vehicles is much lower, creating misaligned incentives Speeding and Rash driving: Speeding and rash driving has been a common trend observed across multiple primary paratransit modes. Sometimes the owner- ship structure is a major reason for over speeding, for example a driver who takes a vehicle on rent tends to driver rashly (as its not his vehicle) when compared to driver who owns the vehicle
  • 18. © 2011 Intellecap. All rights reserved Paratransit feeders (used for short trips) can be classified into three major types; typically not used by the poor 18 Non Motorized Motorized (Non Shared) Motorized (Shared) Definition These are modes which do not have a motor and run on man / animal energy These are vehicles that run on a motor, non- shared modes are the ones where the cost is borne by single commuter These are vehicles that run on a motor, shared modes are ones where the cost is borne by more than one commuter Examples Rickshaws (pedal powered three wheeler), animal carts, rented cycles and the like Okada (Bike Taxis), unshared Autos and taxis Shared autos, Tricycles (bike with a cabin attached) , Capacity (Seats) 2-3 1-4 3-8 Average trip length 2-3 kms Okada: 3-5 kms Non shared taxis: NA 3-8kms 0.38 1.1 0 0.2 0.4 0.6 0.8 1 1.2 Paratransit Feeders (Asia) Paratransit Feeders (Africa) CostinUSD(PPP) Cost for 3km trip using various feeders 3 Feeders are expensive across Asia and Africa:  A 3km trip using a feeder in Asia and Africa would cost roughly 70% of the cost of using a primary paratransit mode for a 10km trip  On an average a consumer spends 4-17% of his monthly earnings to use the feeder, which is high considering feeder would only connect him to a primary mode and doesn‟t complete the trip
  • 19. © 2011 Intellecap. All rights reserved Paratransit feeders: unsafe, cause congestion and pollution  Large number of feeders cause congestion: – Large number of low speed, low capacity vehicles cause congestion in the city and hence feeders are being banned from main roads in the cities and can only operate in internal roads. Like in case of Tricycles and Pedicabs in Manila, the cycle rickshaws are also banned from major roads in Dhaka. There are more than 600,000 such cycle rickshaws which impact the livelihoods of 2.4 million people (assuming 4 people per family), banning rickshaws creates huge amount of unemployment and its an highly political issue to implement such laws effectively in cities like Dhaka. – The policy makers recognize the same and are planning to use the rickshaw as an efficient feeder which is integrated into the public transport system that they aim to develop. In the past the rickshaw acted as a primary mode as the average trip lengths that commuters used to travel were low, but as the city is expanding rapidly the average trip lengths have also increased and hence the rickshaws can no more act as primary modes  Feeders such as Okadas and Tricycles are extremely unsafe: The Okadas (Bike taxis) and the tricycles are very unsafe for passengers as the unique selling proposition (USP) for such modes is speed and swift maneuverability the Okada and tricycle drivers are thus forced to drive rashly and are involved in lot of fatal accidents. (over 14% of the accidents that Okada drivers meet with are fatal accidents)  Pollution: Paratransit feeders are one of the major sources of pollution especially in cities which are predominately dependent on motorized feeders, for example Manila has over 100,000 tricycles. Use of old technologies (such as two stroke engines) and non- ecofriendly fuels such as diesel and petrol worsens the scenario in such cities.  Drivers overcharge commuters and do not follow regulations: Though paratransit rates are regulated in most Asian cities it is often observed that drivers do not comply with the regulations and tend to over charge commuters. The paratransit space is very unorganized and hence maintaining discipline in terms of fares charged and the way the drivers drive is extremely difficult 19
  • 20. © 2011 Intellecap. All rights reserved The policy environment for promoting cycling is more conducive in Asia and Anglophone Africa than in Francophone Africa 0 10 20 30 40 50 60 70 0 10 20 30 40 50 60 70 80 Modalsharepublictransport Modal share walking/cycling5 Surat Weak public transport and unaffordable paratransit result in high numbers of captive walking/cycling commuters 20 Seoul Shanghai Bangalore Accra Abidjan Tokyo Mumbai New Delhi Chennai Kolkata Lahore Manila Johannesburg Dakar Lagos Addis Ababa Nairobi Guwahati Douala Dar Es Salaam Colombo Cape Town Bangkok Hangzhou Istanbul Ahmedabad  Walking and cycling are used mostly by the poorest of the poor in both Asia and Africa  African cities heavily favour walking over cycling unlike their Asian counterparts  While Asian Cities were always high on cycling, its modal share has declined over time7  Despite the decline of the modal share of bicycling over the years, Asian cities are comparatively much higher even now on their modal share of bicycling over their African counterparts that have always had and still have a negligible modal share of bicycling  Promotion of bicycling in African cities is harder as they need development of cycling skills and efforts to make bicycles available at a large scale
  • 21. © 2011 Intellecap. All rights reserved The urban transport environment is hostile to pedestrians and bicyclists 21 Example –fatality data from 35 Indian cities suggest that the fatality rates are on rise 0 10000 20000 30000 40000 50000 60000 2009 2010 High and Rising Fatality in Indian Cities8 7.2% Pedestrians and cyclists comprise a major share of fatalities in 35 Indian cities 25% 22% 14% 10% 8% 6% 5% 5% 5% Fatalities by type of road user - 2010 (n = 12935)8 2-Wheeler Bicycle/pedestrian Truck/Lorry Car Bus Other Tempo/Van 3- Wheeler • Between Bicyclists and Pedestrians, the latter are the worst hit among fatalities • Bicycle is perceived as poor man‟s transport in many Asian cities
  • 22. © 2011 Intellecap. All rights reserved Poor urban transport environment for walking/cycling increases privately owned motorized transport leading to negative externalities for all commuters 47 45 44 39 38 38 2322 39 8 21 22 10 16 Chennai Nanchang Bengaluru Delhi Changzhou Shanghai Xi'an Declining modal share of walking in Asian cities7 Previous Later 22 2001 2008 2002 2005 1984 2007 2002 2008 1986 2006 1986 2004 2002 2006 Year Cities Mode with Greatest Gain Bengaluru Two Wheeler and Car Changzhou Two Wheeler and Car Chennai Two Wheeler Delhi Two Wheeler and Car Nanchang Car  Most of those walking/cycling are “captive users” who would readily shift to privately owned motorized transport as soon as they can afford to  Shifting to privately owned motorized transport leads to negative externalities like congestion, pollution and safety hazards
  • 23. © 2011 Intellecap. All rights reserved Policy to promote walking/cycling has left much to be desired both in Asian and African cities  Primarily driven by the low carbon agenda of the funding agencies like UNEP, GEF, etc.  Difficult to push through policy changes across all cities in any country owing to diffused responsibilities across geographies  Very few cities across Asia have robust policies on promoting walking/cycling  Multiplicity of institutions with lack of clarity on the institutional level roles and responsibilities results in poor planning and implementation of walking/cycling policies  Cities that are quite congested already often do not have enough space for dedicated walking/cycling tracks, leading to a general reluctance on their part to push the walking/cycling agenda 23  Barring South Africa, policy to promote walking/ cycling in Africa is in its rudimentary stage  Most policy for walking and cycling is being pushed as part of low carbon agenda  Most of the cities in Africa are under the diktat of one national level authority and therefore pushing policy reforms across multiple cities in the same nation is a relatively easier proposition in comparison to Asia  Most African cities are still in process of implementing a pilot project featuring their first dedicated cycling track so that the same may prove to be an example for other cities in the nation and even to cities located in other African nations  As Africa is very high on walking and quite low on cycling, numerous examples of policies facilitating projects that promote cycling have been observed in Africa  Reluctance to promote dedicated cycling tracks is stronger in Africa than in Asia as the former are seen settling for or advocating mixed traffic with speed limits of 25-30 kmph with heavy policing Policy on promoting walking/cycling is weak in Asia with very few cities having planned and executed on them: Policy on promoting walking/cycling is weaker in Africa than in Asia with few cities being able to even begin planning and execution
  • 24. © 2011 Intellecap. All rights reserved Traffic engineering, limited budgets and lack of champions limit political will for promoting walking/cycling  It is the poorest of the poor who walk and cycle and their ability to sway policy making, planning and implementation in their favour is rather limited  The “traffic engineering” paradigm of urban transport development that focus on the mobility of the vehicles rather than “integrated transport” paradigm that focuses on the mobility of the people results in policy on walking/cycling being neglected. The former paradigm results in − No policy that focuses on walking and cycling − Commitment of resources for creating infrastructure for privately owned motorized transport  Champions of policy making in favour of privately owned motorized transport are many with strong lobbying to further their agenda  The genuine need for providing infrastructure for public transport often crowds out funding of walking and cycling related infrastructure Some bright spots:  People‟s Republic of China (PRC), the world‟s most populous nation accounting for nearly one fifth of the humanity and once known as “Cycling Kingdom” of the world have decided to promote walking/cycling across its cities in order to arrest the decline and increase the modal share of walking and cycling  India, the second most populous nation of the world accounting for one seventh of the humanity in its National Urban Transport Policy (NUTP) seeks to adopt the “mobility” paradigm as against earlier paradigm of “traffic engineering” in urban transport development  African cities have been approached by agencies like UNEP who have initiated pilot projects in important cities like Nairobi (Kenya) on promoting walking/cycling, so that the same may have the much needed demonstration effect across other cities in Africa  Asian cities other than China and India have also shown similar enthusiasm in moving towards “mobility” paradigm from the “traffic engineering” paradigm (example – Bangkok in Thailand, Changwon in South Korea and Manila in The Philippines) 24
  • 25. © 2011 Intellecap. All rights reserved Agenda 25 Executive Summary Context and Key Definitions Current state of urban transport Public Transport Paratransit Walking and Cycling Issues for Entrepreneurs and service providers Solutions to solve urban transport issues Deep Dives Delhi, India Manila, The Philippines Nairobi, Kenya Annexures
  • 26. © 2011 Intellecap. All rights reserved Three ownership structures are possible in paratransit space 26  Dual Entrepreneur Model: Common in both feeder and primary paratransit modes. For example the model is seen in case of cycle rickshaws in Asia as well as in case of Danfos in Nigeria. In this model the driver and conductor (primary modes) are more vulnerable. The owner earns rent from a fleet of vehicles. The driver is generally responsible for all the operational costs while the owner takes care of periodic costs such as licensing, maintenance etc  Owner-Driver Model: In this case the owner hires his staff to run his fleet of vehicles. The staff, which includes the driver and his assistant (conductor) often belong to the low income groups (public transport modes also operate on this model)  Owner is the Driver Model: This model is largely seen in paratransit feeders where the driver can afford to buy low capacity paratransit feeders as the capex is low. In this case the owner is the driver and he is likely to be from low income segment Dual entrepreneur model Owner – Driver Model Owner is the Driver Model Owner Owns a fleet of vehicles and gives them out for rent, the revenue source for the owner is only rent Entrepreneur/Driver Takes the vehicle on rent and does business Owner Owns the vehicles and hires drivers/other staff to run the operations Driver The driver/other staff work on fixed salary often with a variable component The owner is the driver in this model, there are no additional costs such as rent or salary
  • 27. © 2011 Intellecap. All rights reserved Operators who run Non-Motorized modes are most vulnerable; drivers who run their own vehicle earn the most 27  The drivers who work on a salary earn less than the drivers who operate the vehicles on rent  In the case of Jeepneys in Manila, the drivers earn less than the per capita income because of an oversupply of Jeepneys in the city. The rent of the Jeepney is often twice the daily earning of the driver  Drivers often cannot afford to buy the vehicles because of the high capital expenditure required 650 366 998 292 470 254 499 316 0 200 400 600 800 1000 1200 Matatu (Nairobi) Mini Bus (Gurgaon, Delhi) Danfo (Lagos) Jeepney (Manila) Operators earnings in USD (PPP) Per capita income of the city  The monthly earnings of motorized modes are at least 2-5 times greater than that of non-motorized modes. Rickshaw pullers in most cities earn less than the percapita income of the city  The monthly earnings of drivers who run their own vehicles is higher than that of drivers who take the vehicle on rent Drivers taking vehicle on rent For Nairobi low income expenditure was taken into account Salaried drivers 207 436 554 1383 253 316 499 254 0 200 400 600 800 1000 1200 1400 1600 Cycle Rickshaw (Dhaka) Tricycle-Shared (Manila) Okada (Lagos) Shared Auto (Gurgaon, Delhi) Operators earnings in USD (PPP) Per capita income of the city Driver is the owner Drivers taking vehicle on rent Rickshaw drivers are mostly migrant farmers who migrate to cities from rural areas in non-farming seasons. Hence most of them prefer to take the vehicle on rent. In Indian cities almost 95% rickshaw pullers take rickshaws on rent11 In primary paratransit, drivers who take vehicles on rent earn more9 In paratransit feeders operators who own their vehicle earn more 10
  • 28. © 2011 Intellecap. All rights reserved Long work hours and pressure to recover rent/ earn additional income pushes paratransit operators to break rules 28 Over speeding/ rash driving : In both the dual entrepreneur and the owner-driver based model the drivers are under pressure either to recover the rent that they owe to the owner and to earn more to take home, which results in over speeding. In the case of owner cum driver model the chance of over speeding is lower because the driver owns the vehicle and is likely to be more conscious while driving Over charging: Over charging is not uncommon especially in African cities where the fare of the Matatu ride changes with the amount of traffic on the road and the time of the day, Sometimes it also changes based on the weather conditions, for example on rainy days they charge more. Over charging happens because the driver wants to earn an extra buck and most of the times the money doesn‟t eventually reach the owner of the vehicle. Even when the prices are regulated drivers overcharge in high demand periods as the sector is completely unorganized it is tough to maintain discipline across various operators Not complying to licensing norms: There are a lot of cases where paratransit operators run their vehicles without a license. This is especially seen in the case of rickshaws where most operators are migrants and do not have proper identification or a permanent address on which is mandatory to procure a license. For example in case of Dhaka there are more than 600,000 cycle rickshaws that ply in the metropolitan area and only roughly 90,000 of them have licenses. Lifestyle of typical paratransit operator: A typical paratransit driver spends 14-16 hours working everyday. Most of them are addicted either to alcohol, tobacco or other harmful items. Many rickshaw pullers are migrants who come to the city for employment and live out on the rickshaw as they do not have housing. In the case of Jeepney in Manila, housing is provided by the owner (all Jeepney drivers under a particular owner go back to the garage and spend their nights there). Even Okada drivers are addicted to drugs, and often drive the Okadas because of high levels of unemployment in Lagos.
  • 29. © 2011 Intellecap. All rights reserved Agenda 29 Executive Summary Context and Key Definitions Current state of urban transport Public Transport Paratransit Walking and Cycling Issues for Entrepreneurs and service providers Solutions to solve urban transport issues Deep Dives Delhi, India Manila, The Philippines Nairobi, Kenya Annexures
  • 30. © 2011 Intellecap. All rights reserved Solutions to improve urban mobility of the poor – a snapshot 30 Public transport Paratransit Walking/Cycling Stakeholders (Paratransit) Issues 1. Affordability 2. Long travel time 3. Non compliance of rules by private operators 1. Affordability 2. Lack of safety 3. Highly polluting 1. Lack of safety 2. Poor Walkability in cities 3. Accessibility 1. Lack of organization 2. Access to formal finance BestPractices 1a. Provide subsidies for the poor and design innovative pricing mechanisms 1b. Build infrastructure to provide „right of way‟ to public transport users 1c. Operate buses under single authority or promote limited competition 2a. Regulate pricing 2b. Use high capacity vehicles 2c. Use eco-friendly technologies 3a. Create appropriate infrastructure 3b. Promote public bike sharing (PBS) 3c. Promote bike ownership 3d. Promote cycling in regions with low cycling modal share 4a. Organizing the sector 4b. Providing access to finance 1 2 3 4 5a. Single urban transport authority 5b. Urban transport fund Efficient city planning and management a key to implement most best practices (Best Practices) 5
  • 31. © 2011 Intellecap. All rights reserved Transport policies support subsidies and innovative pricing mechanisms 31 Providing subsidies to the poor and improving ridership on public transport modes through innovative pricing mechanism is part of most country level transport policies, to state a few:  The Indian National Urban transport policy clearly states that the government would always provide basic services (no-frill) to the poor at a subsidized price  The Dhaka policy states that the government will plan a public-private partnership (PPP) to improve the public transport levels in the city and will plan to provide subsidies to the poor as stated in the “Poverty Reduction Strategic Plan” (PRSP) even if the public transport is privatized  The Johannesburg city policy clearly states that the state will aim to provide transportation which would not cost more than 10% of the monthly earnings for any income group customer. The policy also aims to cross subsidize services to the poor by using innovative pricing mechanisms  The Philippines national policy is pro subsidies for sensitive groups such as women, disabled, etc. The policy is however against subsidies for all and cross subsidies. The policy also recommends PPP if necessary and guides the transport authorities to design tariffs by taking all costs and operators margins into account Most governments plan to use Public Private Partnerships (PPP) to address the funding gap and improve the speed of executing public transport projects. Some governments are raising money through multilaterals. For example; the BRT project phase 1 in Lagos received financial support from World Bank and they are in talks with French Development Agency (AFD) for raising credit for phase 2 1a
  • 32. © 2011 Intellecap. All rights reserved Innovative pricing and subsidies make public transport more affordable to commuters Innovative pricing mechanisms for all commuters: Innovative pricings can make public transport more affordable for all commuters and indirectly also impacts the poor Case Study 1 : (Mumbai Local trains- Monthly packages) 32 The Mumbai local trains are one of the most affordable means of public transport modes across Asia. The regular fares itself are quite low but monthly packages make them even more affordable. For example Andheri-Virar-Andheri, a 108 km stretch on a daily basis would cost only USD 2.92 per month12 for the consumer if he takes the monthly pass. As per the comparison above irrespective of the trip length consumers save 70% on average by choosing the monthly package. The quarterly packages would make commuting even more affordable Case Study 2 : TransJakarta BRT (Government bears 50% of the operational expenditure to provide affordable transport)  In the TransJakarta BRT service in Jakarta, Indonesia the government bears 50% of the operational expenses every year to make commuting more affordable. In the year 2011 the bus services only generated 39 million USD through ticket sales while the overall operating expenses were 76 million USD. The government has borne the remaining amount and currently provides the service to consumers at Rp 3,500 (which is approximately 40 cents per trip) Route Distance (Kms) Monthly expense on daily fares (USD) Monthly package price (USD) Savings (USD) /% Saving Andheri-Vile Parle 4 4.52 1.32 3.2 (71%) Andheri-Churchgate 28 7.8 2.35 5.3 (70%) Andheri- Virar 54 12.3 2.92 9.5 (76%) 1a
  • 33. © 2011 Intellecap. All rights reserved Pro poor pricing and subsidies go a long way in making public transport affordable for the urban poor Pro poor pricing mechanisms and subsidies: These are pricing innovations that are specially targeted towards the poor and have a direct impact on the poor Case study 1: Fixed fare, Johannesburg :  Some services have fixed fares irrespective of the distance you travel (For example: No-Frill buses in Bangkok), these services are pro poor assuming the poor travel the farthest. By having a fixed price indirect cross subsidizing is happening as the rich who travel shorter distances pay more than the poor who travel farther Case study 2: Subsidized monthly packages for the poor and sensitive groups in Delhi buses:13  Apart from providing a better price for all consumers who procure a monthly package the Delhi Transport corporation (DTC) also provides special monthly fares for the poor and other sensitive groups such as senior citizens, students, disabled etc. 33 Passenger type Fare (INR) Regular Passenger 800 Poor user (the poor will have to provide a below poverty line (BPL) card to avail this offer) 500 Students 100 Senior citizens 50 Disabled Free 1a
  • 34. © 2011 Intellecap. All rights reserved Providing ‘right of way’ for public transport users would reduce trip times; most policies are looking at it Rapid motorization is causing congestion in most large cities and the users of public transport are penalized for the rapid growth in public transport. For example : buses in Delhi carry 44% of the vehicular passengers (excluding passengers who walk/cycle) but buses account for only 1.55% of the total vehicles on the roads of Delhi. This clearly means that commuters who use public transport are being penalized for congestion caused by private vehicles. Policy makers have identified this as an issue and are creating policies focused towards providing „right of way‟ for public transport users On the other hand cost of building the metro rail system is much higher when compared to building mass rapid transit systems with buses (for a kilometer of rail system 12 kms of bus systems can be built) 34 Policies focused on providing ‘right of way’:  The Indian National Urban Transport Policy (NUTP) clearly states that transport planners in other federal states in India must focus on equitable distribution of space for public transport and non motorized transit users. The policy clearly calls for a focus on creating lanes for high occupancy vehicles.  The polices of various cities such as Delhi, Ahmedabad, Mumbai etc. focus on the need of developing a bus rapid transit system on the city roads  The city policy of Dhaka also clearly calls for the need of BRT in the city and also states that the government would use the „Build operate and transfer model‟ with a private player to fund the project There are three types across the world, segregated bus ways through painted lines, segregated lanes and comprehensive BRT lines (with fare integration etc.) 1b
  • 35. © 2011 Intellecap. All rights reserved Bus Rapid Transit lanes improve the trip times for bus passengers: BRT Lite - A case study of Lagos Context:  Lagos is the 6th largest city in the world in terms of population and the largest city in Africa with a population of 17 million. It is a city which is predominantly dependent on paratransit and private vehicles for commuting, while 25% of the population used buses (which contributed to 4% of the vehicles on the road) transit is time consuming and expensive The BRT Project:  The Lagos Metropolitan Area Transport Authority (LAMATA) in 2008 decided to invest in a BRT-Lite system which required a cost of $1.7million per km when compared to $6 million per km for a comprehensive BRT  Key takeaways: − Stakeholder engagement: LAMATA ensured that it kept all key stakeholders in mind while planning the BRT corridor. LAMATA was also successful in forging partnerships with key organizations such as the National Union of road transport workers, which formed a cooperative to run the BRT system − Strong inter-agency coordination: coordination between multiple agencies was the key for the implementation of the project 35 Project Impact:14 Currently the BRT operates 220 buses, moving 200,000 passengers on a daily basis  The journey time reduced by 25 minutes from one end to the other end of BRT  The rates have fallen from 230 Naira per person to 100 Naira per person post the BRT 1b
  • 36. © 2011 Intellecap. All rights reserved Bus Rapid Transit lanes improve the trip times for bus passengers: Comprehensive- BRT Guangzhou 36 Context: The city of Guangzhou, with a population of 11-15 million people and 32% modal share (as of 2007) for bus commuting was highly critical to provide a right of way for buses and relieve them from congestion. In 2010, the first 23km BRT lane with 26 stations was implemented in Guangzhou and was immensely successful Impact:15 Today, over 800,000 people use the BRT buses on a daily basis and it carries 23,000 passengers / hour in a single direction. This is 4 times greater than the next big BRT in Xiamen, China which carries 7400 passengers/hour. The Guangzhou BRT is second only to TransMilenio Key features for success of the BRT:  Pedestrain foot over bridges for pedestrian crossing at every station which makes the entry and exit from the station very safe  Electronic ticketing system where the passenger just needs to tap a smart card (which is known as Yang Cheng Tong) while entering and while exiting a station for the amount to get deducted directly. This card is a multi purpose card which is not just used for transport related costs  Multi-modal connectivity: The BRT lanes are connected to three metro stations and have public bike sharing systems (PBS) integrated to the BRT lanes Key design elements make this rapid transit system the world's longest BRT stations - around 260m (in city centers) including bridges - with bus volumes of 1 bus every 10 seconds or 350 per hour in a single direction. In suburban areas the station is 60m wide and has lesser volume. The BRT system has two new lines and two extensions planned Planning for pedestrian safety and implementing consumer friendly systems make the Guangzhou BRT the efficient system that it is today. The Guangzhou system is known for providing metro like services over buses 1b
  • 37. © 2011 Intellecap. All rights reserved 37 Some city governments choose to privatize the bus operations which creates many problems like the private players not complying with various rules set by the government. This non compliance results in a bad commuter experience across cities where bus operations are privatized. Ideally, all public transport systems whether managed by public sector or the private must comply with certain rules like  Maintaining fixed fares  Adhering to a predetermined schedule  Complying to safety norms (not over speeding and so on) and  Plying only in the prescribed routes Some possible solutions to solve these issues could be:  Regulating licensing based on travel demand: The city governments may issue licenses in a particular route based on travel demand in that route. Over issuing of licenses would create unnecessary competition which would force the bus drivers to over speed to make extra revenues. Proper route planning and issue of licenses should be implemented in an efficient manner to solve this issue.  Operating the entire bus fleet under a single bus management agency: If many private players are involved in bus operations, the standards of the service would vary across different players and as all players compete with each other they prefer to operate on the high demand routes alone. To solve this problem if all the fleets are managed by a single agency and the revenues are shared with multiple players in a transparent manner at the end of each month, it would help organize this sector better, resulting in all routes being covered and effective fare regulation being implemented.  Promote limited competition: By creating higher barriers for entry (for example requirement of a larger fleet size, lowest fare bid and so on), large corporates can be attracted to operate the bus services in an efficient manner. As majority of the fleet would be owned by fewer players resulting in healthy competition and the commuter would be benefited when such competition is promoted. Operate buses under single authority or promote limited and healthy competition 1c
  • 38. © 2011 Intellecap. All rights reserved Price regulations make primary paratransit more affordable  The rates are regulated in Asia and hence the modes are more affordable. Regulation of rates make the cost/km in Asia 3 times lower than that of Africa  A consumer has to spend 20-30% of his monthly income in Africa to use paratransit primary modes. This is because the sector is completely unregulated and fares fluctuate with the demand. For example in the case of Matatus in Nairobi, a onward trip which costs Ksh 100 during peak hours would cost only Ksh 20 during the return trip during non-peak hours  To make the commuter experience better, it is also important to implement safety norms and promote route planning either through licensing or through self regulation 38 30 20 11.26 6 0 5 10 15 20 25 30 35 Matatu Danfo Jeepney Mini Bus (India) %ofmonthlyincome Monthly spending on various paratransit modes16 0.52 1.64 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 Asia Africa Cost/KminUSD(PPP) Cost for 10km trip using primary paratransit modes in Asia and Africa3 Regulated fares Case Study: Manila Jeepney price regulation: The Land Transportation Franchising and Regulatory Board (LTFRB) in Manila is responsible for regulating the prices of Jeepneys and paratransit modes to make them more affordable to the consumer. The prices are fixed in such a way that it is a win-win for the consumer and the entrepreneur who owns the Jeepney. For ex: In Feb 2009, when the diesel prices where P23 per liter the tariff was fixed at P7 per passenger for the first 4 kms, in the year 2011 the price of diesel almost doubled to P45.5 but the tariff only increased to P8 per passenger for the first 4 kms. The Department of Energy (DOE) offered smart cards to Jeepney drivers with P1050 which can be used to purchase fuel. By taking care of the entrepreneurs interests, the government is successfully able to regulate the prices of primary paratransit modes 2a
  • 39. © 2011 Intellecap. All rights reserved Price regulation make feeders more affordable in Asia, Shared modes are more affordable than non shared modes  A consumer has to spend anywhere between 4-17% to use feeders . This is very high because feeders just act as connectors to primary modes  Of the feeders analyzed shared modes are most affordable to the poor (example: Share Auto and Tricycle). The rates of tricycles and share autos are also regulated which makes them even more affordable. 39 17 14 5.56 4 0 2 4 6 8 10 12 14 16 18 Rickshaw Okada Tricycle Share Auto %ofmonthlyincome Monthly expenditure on feeders17 Shared modes 0.88 0.77 0.36 0.19 0 0.2 0.4 0.6 0.8 1 Rickshaw Okada Tricycle Share Auto CostinUSD(PPP) Cost for 3km trip using various feeders2 Case study: Regulated rates and routes in Manila: The rates are regulated by the Land Transportation Franchising and Regulatory Board (LTFRB) in Manila. The current tariff rate for the tricycle is P8 for the first km and P1 for every km after that. The Metropolitan Manila Development Authority (MMDA) recently warned the tricycle operators and reminded them to follow 1990 Metro Manila Council (MMC) ordinance which prohibits pedicabs and tricycles along major roads in Metro Manila. All tricycles have specific franchise routes in which they can operate as per law. This will ensure that all the 120,000 tricycles are well organized and operate in their own territories. Regulations not only ensure that the tricycle acts as feeder but also ensures that the fares are affordable 2a
  • 40. © 2011 Intellecap. All rights reserved High capacity vehicles will improve affordability and reduce emissions Low capacity of the mode increases congestion: With rapid motorization, the use of low capacity primary paratransit modes will only worsen congestion levels in the city. Use of more efficient fuels to reduce emissions: As many paratransit modes are either ill maintained or have a very old engine it is very critical to promote better technologies or fuels to make them less harmful to the environment, here are a few ways to do it: • LPG Conversion: As part of government efforts to promote fuel efficiency and reduce air pollution, the Philippines government announced in 2008 a program to replace the engines of old jeepneys with new LPG engines. The challenge with this scheme was the high cost of conversion P250,000 (which is 50% of the initial capital expenditure of Jeepney). Larger size vehicles require more capital to convert into efficient fuels when compared to smaller vehicles, for example a taxi conversion would cost only P20,000 • Retro fitting engines (converting 2 stroke to 4 stroke) a potential solution for feeders: An organization called Envirofit is installing retrofitted engines in a few cities in the Philippines. By technological additions the engines can be made more environmentally friendly, apart from the health and environmental benefits, the fuel efficiency offered by retrofits can mean big savings for drivers of two-stroke tricycles , and thus a big boost for their livelihoods. The retrofit kits pay for themselves in fuel savings within 10 months. To make the upfront costs affordable, however, the cities provide micro-financing, recognizing that many local taxi drivers have little disposable income. 40 Case of Matatu’s HCV – The Nairobi transport planners are aiming to convert all low capacity Matatus in the city to high capacity vehicles which would not only make paratransit more affordable but also would reduce the congestion in the city and reduce overall travel times. The process of moving from a 14 seat Matatu to a 50 seat bus, would create job losses of an average 6 persons per conversion. Hence, the transport planners in the city want to phase out Matatus from the main areas in the city and use them as effective feeders in the suburbs. There is a lot of resistance the government is phasing from the Matatu drivers as they anticipate that this move would lead to major job losses in the city 2b 2c
  • 41. © 2011 Intellecap. All rights reserved Improving infrastructure for walking/cycling Desirable features of infrastructure to improve walking and cycling  Walkability – improving/creating walkways / footpaths / sidewalks that are continuous, clean, spacious, non encroached with resting spaces/benches (preferably shaded) and drinking water facilities. Construction of adequate FOBs, crossings and subways  Cycling – Building dedicated cycling tracks that are continuous, spacious, non-encroached with crossings and subways Lessons from the example:  Need for a strong political will to build infrastructure that favours biking and cycling  Pre-existing infrastructure and pre-existing cycling culture in the city supported the change in favour of walking cycling  A progressive urban transport plan and design code  Planning for supporting infrastructure like cycle parking lots to make the feeder trips possible  Providing interconnectivity with public transport modes like metros 41 Successful Case Example - Guangzhou, China For decades many Chinese cities have provided dedicated roads for walking and cycling. Most Chinese cities provide pavement, crosswalks, bike lanes and traffic signals for bicyclists and pedestrians. An important reason was adherence to the urban road transport plan and design code (GB-50220-95) which necessitated construction of pavements (along main and subsidiary roads) that could also be used by the bicycles. The city of Guangzhou witnessed a fall in the modal share for walking/cycling when use of privately owned motorized modes increased at the cost of walking/cycling, until the city of Guangzhou banned motorcycles in 2007. Local lawmaker Chen Zhongqian first proposed the city do more to accommodate bicyclists during the annual session of the city‟s people‟s congress in January. Since that time, Guangzhou urban planning bureau has reopened many of the closed cycling lanes along major urban roads where the conditions allowed. Besides, it decided to build bicycle roads along with all the new roads and required new residential buildings, especially near metro stations to set aside space for bicycle parking lot. The initiatives not only helped increase once again the number of bikers in the city but also relieved some pressure from the public transport system. 3a
  • 42. © 2011 Intellecap. All rights reserved Improving infrastructure for walking/cycling Lessons from the example • Designing of the track needs to be done keeping the principles of continuity, spaciousness, comfort and safety of the commuters under consideration • Maintenance of tracks is necessary to keep them commutable • Anticipation of possible encroachments and building in mitigation measures such as spaces for the hawkers is also necessary Note: Asia has a pre existing biking culture and this goes in favour of promoting cycling. In India however, there is a social stigma attached to biking and this perception needs to be changed if modal share of cycling were to grow significantly 42 Unsuccessful Case Example – Pune, India : Pune has the highest walkability index in India as per a recent study conducted by Clean Air Initiative (CAI) – Asia funded by Shakti Sustainable Energy Foundation. Pune, was fast losing its reputation as the cycling capital of India, when the NMT cell of the Pune Municipal Corporation (PMC) decided to develop 300-km long dedicated cycling tracks. By early 2011, the city had built 132 kms of dedicated cycle tracks on 20 roads which together made 18 cycling tracks in Pune. As per Parisar, an organization working for improving cycling in Pune, they decided to take stock of the performance of 12 out of the 18 tracks as they did not consider the remaining 6 tracks “even fit to be called cycle tracks”. They surveyed 12 tracks that were 87.5 km long and discovered that they were in “terrible condition”. “Research found encroachments like slums, hawkers, electric poles, garbage bins, traffic and CCTV poles. Lights, signages, differentiation between a footpath and cycle track, ramps and shades and connectivity between tracks were also missing. If obstructions are added up, they come to a whopping 3,900 on tracks studied.” (Times of India, 26th December 2011). The study inferred that the PMC failed to focus on continuity while designing the tracks. They assessed that policy needed to be put in place to assess and maintain the tracks. The Municipal Commissioner has taken action to rejuvenate the NMT cell by making appropriate budgetary allocations and mooting the idea of appointing a cyclist to take care of the cell. 3a
  • 43. © 2011 Intellecap. All rights reserved Asia is the fastest growing market for Public Bike Sharing Rationale for promoting Public Bike Sharing  Expands the choice of mode for the poor who can reduce their travel time and afford the cost of transport  Provides feeder services to and disbursal services from the primary modes of transport and helps the poor commute longer distances  Eliminates the threat to loss of cycles through theft as usually it provides for secure parking for bikes that are owned and are taken care of by either the government (example-Hangzhou, China) or by a private enterprise (example-Rajkot, India) Examples of Public Bike sharing in Asia (fastest growing market for bike sharing)  TownBike programme of Singapore (1999-2007) – A first in Asia  Taito Bicycle sharing Experiment in Taito, Japan – 2002-03, 130 bicycles at 12 locations  Nubija bike sharing programme in Changwon, South Korea – 2008 – 430 bicycle, 20 terminals  C-Bike in Kaohsiung City, Taiwan – and the Youbike programme with 500 bicycles at 10 locations – 2009  Public Bike sharing system in Hangzhou, China – 2008, IT based systems comprising 40,000 bicycles with 1600 stations with plans of expanding to 50,000 bicycles across 2000 stations by 2009.  The Chinese cities of Beijing, Tianjin, Hainan, and Suzhou launched pilot programs in 2008 and 2009.  Ministry of Urban Development in India is preparing to launch a 10-city public bike scheme as part of its “Mission for Sustainable Habitat” 43 Successful Public Bike Sharing – Hangzhou, China18  Provides seamless connection of bicycle based slow speed traffic with metro and bus based public transport  Affordable at free first hour, @ 1 Yuan and 2 yuan in the 2nd and 3rd hours respectively and 3 Yuan per hour for fourth hour onwards for 24 hours  Little theft or vandalism of bikes owing to the provision of black listing the errant commuters and denying them access to the facility for life  Hiring hassles reduced owing to installation of POS system that enables ending rental by parking at the stall, swiping the transportation card over the bike itself and walking away 3b
  • 44. © 2011 Intellecap. All rights reserved Public Bike Sharing services providers and business models 44 • The Public Bike Sharing facilities May be provided by Advertising Agencies (no example in Asia); Public Transport Agency (example-Hangzhou Public Bicycle, China); offered by the Local Government and Public Authority (example – Nubija in Changwon, North Korea); For Profit Agency (example – proposed in Pune, India) and Non Profit agencies (example – Wuhan Public Bicycle, China) • The main sources of revenue for all providers comprises of member and non-member user charges and advertising on the bikes, bike sharing stations, billboards and street furniture. Models run by public transport agencies depends additionally upon government subsidies, the ones run by local government and public authority additionally depend on Municipality funding and the ones run by non profits additionally depend upon loans from banks, public-Private partnership funding and local funding. Provider Standard Operating Model Advertising Agency Provide bike sharing services in lieu of rights for advertising on bill boards, street furniture, etc. Public Transport agency Provide bike sharing under guidance of public authority for enhancing the public transport system Local Government and public Authority Directly design and operate a bike sharing scheme or purchase it from other agencies providing these services For Profits Provide bike sharing with minimal government involvement Not for Profit Provide bike sharing services under support of public agencies or city councils 3b
  • 45. © 2011 Intellecap. All rights reserved Public Bike Sharing problems and solutions (Good practices) 45 Problems experienced Solutions devised Bicycle theft and vandalism Third generation bike sharing programmes have introduced smart cards that have significantly reduced the problem of theft and vandalism as the subscriber anonymity is no more an issue. Technologies like global positioning systems and radio frequency tracking greatly help reduce theft but tend to increase programme implementation costs. Programmes are also employing membership based lending process to reduce theft. Hangzhou bike sharing employs inexpensive bikes (400 RMB) to avoid theft. A high density of bicycles that are available for free in the 1st hour help obviate the need for stealing the bike. The fourth generation bike sharing programmes are planning to introduce robust bicycles necessitating low maintenance cost and strong locking systems to deter theft/vandalism. Bicycle redistribution Efficient redistribution of bicycles to locations with high demand, once the bicycle has been used, improves the efficiency of the programme. Hangzhou bike sharing programme uses 20 natural gas fuelled trucks for bicycle redistribution. Further, attempts are being made to equip redistribution vehicles with computers to provide online information to the drivers on the location wise bicycle shortage and station crowding. This would lead to fourth generation bike sharing programmes that are “Demand-responsive Multi-modal systems” Information System Third generation bike sharing programmes are providing the users with internet based real time information on availability of bikes and location of bike sharing stations, thereby helping it make more user friendly and therefore their use needs to be encouraged. Insurance and liability consideration Hangzhou bike sharing system provides insurance against any injury that occurs through their programme. Insurance raises the cost of providing the services but the accident data indicates low risks that may keep the premiums low as well. Prelaunch consideration Success of bike sharing programmes is linked to its ability to meet the needs of its target segment before and after deployment. As bicycle availability prediction is a complicated issue to address, programmes have responded by deploying mobile bike stations, that may be relocated based on the usage pattern. Pre launch marketing and appropriate pricing too have been identified as critical factors that contribute to the success of business models. 3b
  • 46. © 2011 Intellecap. All rights reserved Promoting bike ownership programs 46 Rationale for promoting bike ownership programme  Promoting bike ownership programme is relevant in African context where modal share of cycling is insignificant  Anglophone Africa is better placed than the francophone Africa in terms of modal share of cycling  Promoting bike ownership is necessitated by the fact that African cities have a relatively weak bicycling culture  To facilitate door to door trips for short to medium distances (upto 8 kms) Do’s from the Afribike Programme  Carefully targeted bike ownership programme can create demonstration effect that may lead to increased modal share of cycling in cities  Arrangements for supply of good quality affordable cycles would help the programme  Capacity building at cycling skills of the prospective commuters using bicycles as a mode of transportation would help the uptake of the programme  Capacity building of vendors who may provide maintenance services and helping strengthening the maintenance infrastructure would help the sustainability of the programme  Institutionalizing the programme would help it to sustain over a period of time leading to continued effort at promoting cycling by promoting bike ownership programme Don’ts from Shova Kalula Gender mainstreaming for better uptake , Decentralized programme implementation to ensure that the responsibility is distributed across institutions and their respective suppliers and jettisoning the idea of importing in favour of indigenous production of bikes so that outreach is not deterred by non availability of spare parts Successful example (Johanessburg and other cities, South Africa) From 1995 to 2000 ITDP funded its project named Afribike which went on to become an independent organization. Afribike trained numerous children and women in riding bicycle, maintaining and operating it while providing the same to the beneficiaries. The Department of Transport in South Africa realized that it was cheaper for them to offer bikes than school buses. Therefore, they started the programme called Shova Kalula to upscale the bicycle use across various cities in South Africa. In 2000, ITDP entered into a partnership with PEER Africa and B. Slotar & Sons, to import continuous shipments of new, specially-designed low cost bicycles and distribute them through PEER's Eco-Housing dealerships and local bicycle retailers. Large employers and public agencies are participating with payroll deduction financing. The demonstration effect created by the programme led to the rise in modal share of bicycling in many cities of South Africa. 3c
  • 47. © 2011 Intellecap. All rights reserved Promoting cycling in regions with low/negligible modal share 47  A plethora of institutions have come up with an objective to promote cycling in “cycling poor” regions like Africa  The relevance of promoting cycling in these regions comes with the objective of promoting low cost mobility (personal as well as public transport) and environment conservation Examples of cycling promoting institutions in Africa19  Pan Africa Bicycle Promotion Network (PABIN) – Promoted by International Bicycle Fund, the organization works to ”improve opportunities for bicycle transport and low-cost mobility to improve productivity, the quality of life and the environment in Africa”. Apart from running a e mail discussion group on bicycles and non motorized transport, it also provides information on various other network members active across Africa for promotion of cycling.  Bicycle Aid – Provides a list of organizations that recycle bicycles to various projects across African countries  Cycling Out of Poverty – It helps local African NGOs to start a bicycle micro credit programme with funding  Bamboosero – Ghana based organization working on producing and promoting bamboo bikes  Mozambikes – They not only produce bicycles but also run a not for profit that purchases bicycles at costs and distributes it across Mozambique  Qhubeka – A South Africa based organization that runs a programme that helps african children to grow trees to earn a bike  Jugendhilfe Ostafrica – A Germany based NGO promoting the use of bikes in Uganda  Zambikes – Zambia based organization involved in production of Bamboo Bikes  Bicycling Empowerment Network – Based in Cape Town, South Africa, the organization aims to adress poverty and mobility through the promotion of bicycles in all its forms. It “imports used bicycles from overseas and distributes them to low income areas, trains recipients of the bikes in safety and maintenance, establishes Bicycle Empowerment Centre's (BEC's) and encourages cities to implement bicycle planning and infrastructure. BEN also assists the planning of events to help promote the use of the bicycle as a form of mobility”  Banboo Bike Project – Based out of Kumasi, Ghana, the project that began in 2007 with seed funding from the Earth Institute, has adapted its bamboo bike design to suit the road conditions of Sub-Saharan Africa, has established systems to utilize local raw material, management and labour and in 2010 became the first organization in Africa to run a bamboo bike production facility. Working with the Earth Institute‟s Millennium Cities Initiatives (MCI), the programme is now in process of scaling up from feasibility project to routine production. 3d
  • 48. © 2011 Intellecap. All rights reserved Organizing the paratransit sector is a win-win for the entrepreneur and the consumer (Ecocabs India) Organizing the sector would streamline the paratransit operations which would not only improve the lifestyle and earnings of the operators but also would improve the commuter experience Case Study: Ecocabs, Fazilka, India: The Model: The Ecocab project is a “dial a rickshaw” service which is operational in a small town in Fazilka, India. The commuter needs to dial his zonal call center and a rickshaw would be available at her doorstep within 10-15 minutes. Currently they have 5 call centers operational in various zones in Fazilka. The call center is run by a not-for-profit organization called Graduates Welfare Association, Fazilka (GWAF). The model has been replicated across many other cities of The Punjab. Benefits to the rickshaw puller:  Health: The organization tied up with local doctors to help provide free medical consultation to the Fazilka rickshaw pullers. They also tied up pharmacies in the area to provide medicines at discounted rates  Education: The organization provides free school bags to all school going children in the Ecocab owner families  Legal aid: The organization tied up with lawyers in the Fazilka area who provide free legal services to the rickshaw pullers  Lifestyle: The Ecocab rickshaw pullers operate out of a shed which provides them shade and has television sets for entertainment. Now the rickshaw pullers do not have to brave the vagaries of weather 48 Benefits to the society:  Organized informal public transport service  Reliable and safe service at the door step  Ecofriendly mode  The new design of the rickshaw is relatively more comfortable and provides more luggage space than before 4a
  • 49. © 2011 Intellecap. All rights reserved Organizing the paratransit sector is a win-win for the entrepreneur and the consumer (Go-Jek Indonesia) Case Study: Go-Jek, Indonesia: The Model: The motorcycle taxi is called Ojek in Indonesia. Go-jek is a call center based service that helps organize the Ojek operations. The unique aspect of the this service is the diversification in services provided in order to increase the earnings of the Ojek drivers and improve their life styles Diversified service offerings:  Basic transport service: The go-jek drivers are scattered across various locations and are coordinated through a GPS tracking system and provide basic commuting services  Instant courier: With most cities struggling with the issue of congestion, the Ojeks are a good mode for fast commuting in cities and can help with on-time deliveries.  Corporate services: The operators of the service design customized services to corporates from whom they can generate repetitive business  Shopping and Delivery: This unique service helps customers buy basic groceries and other services even while sitting at home. Go-jek has tied up with 12 retail stores and as soon as the consumer places an order they pick up the product and deliver the same 49 Innovative service offerings provide better lifestyle for the operators Note: There are other similar models such as G-Auto, Ahmedabad, dial-a- rickshaw, Gurgaon that have not been covered in this report 4a
  • 50. © 2011 Intellecap. All rights reserved Access to finance to enable ownership could increase earnings for paratransit operators in long run Drivers who earn the vehicles and drive it themselves earn the most and providing access to finance to paratransit drivers would improve their lifestyles and increase their daily earnings Case Study (Rickshaw Bank, Guwahati, India): The cycle rickshaw, a non-motorized means already has its limitations as it cannot be used for trip lengths greater than 3kms and it is time and energy consuming. In addition, most rickshaw pullers take the rickshaw on rent as they cant afford to buy and rickshaw and end up paying 15% of their daily income on rent. Rickshaw bank an innovative loan product run by Center for Rural Development (CRD) a not for profit in Guwahati provides loan for the rickshaw pullers to buy their own rickshaws. The product: A group loan product given to groups of 5 members each Capex: INR 13000 (which is 60% higher than a traditional rickshaw as CRD sells a specially designed rickshaw which has more space for commuter seating, its easier to ride and has advertisement space) EMI per day: INR 25 per day (same as daily rent) Term: 20 Months After 20 months the daily earnings of the rickshaw driver would directly increase by 15% as he would earn the vehicle then 50 ‘Ad Space’ an alternate revenue source: Having ad space behind the vehicle can be a very good alternate revenue source. Rickshaw bank (CRD) is currently using this space to promote their sponsors . In large cities this space could potentially generate additional income not only for the operators but also to the model operators (such as Fazilka etc) who can sustain their operations through the revenues generated through advertisements 4b
  • 51. © 2011 Intellecap. All rights reserved Few best practices in city management that would help plan and implement things better  5a. Unified Metropolis Transport Authority (UMTA) : Multiple agencies being responsible for various aspects is a big challenge that many cities face today. With extending metropolitan areas and increasing sprawls in most big cities it becomes very critical to have a unified authority that takes care of various transport related planning be it land use planning or mobility planning. The initiative of forming unified transport authorities have been taken up in various Indian cities such as Hyderabad, Bangalore, Delhi etc  5b. Urban Transport fund: Not just having a unified body it is also critical that the body has enough funds to fund its expansion plans etc. Developing transport infrastructure is not a one time activity and as it needs repetitive investments it would be critical to setup a dedicated fund where all the revenue generated through transport related activities such as revenue through parking, advertisements, real estate space etc go into the fund and they are further invested into public transport development such as BRTs and metros. As per a primary interview with an expert from ITDP the city of Chennai has a potential of raising 700 crores rupees just by collecting parking fees and creating a fund, the money raised is 7 times the money spent on subsidizing the bus service, this way giving subsidies would become sustainable as car users are charged and the benefits are cross subsidized to public transport users 51 Case of the Hyderabad Metropolitan Development Authority (HMDA):20 The HMDA was setup in the year 2008 which also has to establish the UMTA in Hyderabad. As per the proposed plan the UMTA would constitute various heads of departments ranging from the municipal corporation to the head of APSRTC (the institute that runs the bus service) to various experts in the transport space. The committee has a special fund allocated for development, an initial seed fund of USD 20 million was allocated to the committee and the committee would be responsible for planning and implementation of various activities such as CNG for paratransit, setting up SPV for BRTS etc 5
  • 52. © 2011 Intellecap. All rights reserved Agenda 52 Executive Summary Context and Key Definitions Current state of urban transport Public Transport Paratransit Walking and Cycling Issues for Entrepreneurs and service providers Solutions to solve urban transport issues Deep Dives Delhi, India Manila, The Philippines Nairobi, Kenya Annexures
  • 53. © 2011 Intellecap. All rights reserved The urban poor largely resort to walking/cycling, followed by public buses which are affordable 53  National Capital Region of Delhi does not have an effective and unified urban development authority  The study focuses mostly on National Capital Territory which does not include areas falling in Haryana, UP and Rajasthan 26 4 39 9 22 Modal Share of National Capital Territory (NCT) of Delhi5 Buses Metros Walking and Cycling 2 Paratransit Personal vehicles General  The NCT region had a population of 11 million with a population density of 11,297 persons per km² in 2011 Public Transport  In Delhi public transport trips are multi modal , usually involving walking/cycling at either end of the journey to reach the final destination  According to a Transport Demand Forecast study commissioned by DMITS on behalf of Transport Department, the NCT requires an additional 148.5 kms of Metro rail, 40.3 kms of Mono rail (currently there is no mono rail in Delhi) and 394.9 kms of BRT Paratransit  The major modes deployed under the category are 3 wheelers (shared and non shared) autos, taxis and cycle rickshaws which together have a modal share of 9%  Paratransit is mostly used for feeder purposes and are not affordable to the poor  The Delhi government has succeeded in converting the entire paratransit fleet to run on Compressed Natural Gas (CNG) Walking/cycling  Delhi has the second highest number of walk trips among Indian cities after Mumbai at about 5 million trips and has the highest number of cycling trips at 2.8 million trips among Indian cities  Walking and cycling has not received proportionate attention from the policy makers, planners and implementers Focus area for this study Note: Most of the data in this section has been compiled through interviews with list of key informants (Refer to Annexure 3)
  • 54. © 2011 Intellecap. All rights reserved In Delhi nearly 2.2 million people are below the poverty line ($0.45 per day), constituting 15% of the total population  The per capita income of Delhi was INR 1.17 lakh in 2009-1021  Monthly Per Capita Expenditure (MPCE) as per the survey conducted by National Sample Survey Office (NSSO) 66th round in urban Delhi was INR 2905 in 2009-10  The Gini coefficient of income in urban India is on the rise as it has gone up by 15% from 0.39 to 0.43 between 1994-95 to 2004-05  The Planning Commission of India estimates the monthly per capita poverty line for urban Delhi to be INR 309.48 in 1993-94, INR 454.11 in 1999-2001 and INR 612.91 in 2004-05 54 The informal settlements of Delhi In 2001, nearly 1.8 million people lived in the slums of Delhi. The 2011 slum population figures are yet to be released but despite a broadening of slum definition, it is likely either to stagnate or increase only marginally owing to resettlement program Characteristics of Delhi’s urban poor The poor of urban Delhi often engaged in casual labour, usually migrants from the rural landless or small and marginal farmer households, with low or no education or skills Commuting pattern of the urban poor  In 2011 the employed poor of Delhi mostly walked (49%), cycled (15%) or used bus based public transport (23%)  In 2011 the unemployed poor of Delhi mostly walked (87%), cycled (2%) or used bus based public transport (8%) 1.5 1.1 2.2 0 0.5 1 1.5 2 2.5 1993-94 1999-2000 2004-05 People below poverty line (in Millions), (% of population)22 (16%) (9%) (15%)
  • 55. © 2011 Intellecap. All rights reserved A relatively streamlined city management structure; better coordination between union and state governments required 55 Ministry of Urban Development (MoUD), Government of India (GoI) Government of National Capital Territory of Delhi (GNCTD) National Capital Region Board (NCRB)-An autonomous body of GoI under MoUD Delhi Development Authority (DDA)-An autonomous body of GoI under MoUD Delhi Integrated Metropolitan Transit System Limited (DIMTS), a JV between GNCTD and IDFC Delhi Transport Corporation (DTC) Department of Transport  Commissioner of Transport  State Transport Authority  Mass Rapid Transit System Delhi Metro Rail Corporation (DMRC)-A Joint Venture (JV) between MoUD and GNCTD Refer to Annexure – 4 for functions of some of the agencies mentioned above  Most of the agencies have their functions, jurisdiction and powers defined through various Acts and statutes with little overlap  The Delhi Municipal Corporation has recently been subdivided into three Municipalities of North, South and East Delhi  In the New Delhi parliamentary constituency of NCT, New Delhi Municipal Council (NDMC) inter alia looks after the building approval, estate commercial, estate housing and enforcement, each of which impact the land use and urban transport planning  DIMTS has been set up as a special purpose vehicle to tackle the problem of ineffective transport delivery and to provide expert services in the field of urban transport to GNCTD  NCRB was constituted under the NCRPB Act, 1985. Its key rationale was to promote balanced and harmonized development of the Region, and to contain haphazard and unplanned urban growth by channelisig the flow and direction of economic growth along more balanced and spatially-oriented paths  Delhi Police comes under the jurisdiction of Ministry of Home Affairs, GoI Entities Impacting the Urban Transport Landscape in Delhi
  • 56. © 2011 Intellecap. All rights reserved In Delhi buses are more accessible and affordable than metros; paratransit modes are not affordable for the urban poor 56 15 10 20 0 10 20 30 Metro Train (AC) Bus (No-frill) Bus AC Cost for 10km trip (INR)23 5 25 38.5 64 0 20 40 60 80 Bus (No-frill) Cycle rickshaw Auto rickshaw Metered Taxi Cost for 5km trip (INR)24 Delhi has great public transport infrastructure with various modes such as high speed mass transit metros, no-frill buses, low floor air conditioned buses etc. Each mode solves a particular purpose: The Delhi Metro:  The Delhi metro is the largest metro rail project in India with 6 lines covering 190km stretch  It is the fastest and most effective means of transport for long distance trips, especially commuting between Delhi and its suburban satellite cities such as Gurgaon and Noida  On an average a ride in a metro would cost INR 1.5 per km, with average trip lengths of 10km in Delhi it would cost INR 15 per trip or INR 30 per day  With an assumption that no household should spend more than 10% on travel the Metro is an affordable mode only for households who earn more than INR 18000 per month ($12 per day) (assuming two people in a family travel) The Delhi buses:  No-frill buses cater to the poor, these buses cost on an average INR 1 per km, which means it would cost INR 20 per day for a round trip and INR 600 per month for the commuter.  These buses are affordable means for all families with household income greater than INR 12,000 per month ($8 per day) (assuming two people in a family travel)  The Delhi government also provides a monthly bus card for families below the poverty line by which one person in a family can travel any distance for only INR 500 per month  These cards are not affordable for the poor because they do not possess that surplus amount as most are daily waged workers There are many paratransit modes in Delhi, such as the metered taxis, auto rickshaws and the cycle rickshaws. Most of them work on fixed meter rates (other than the cycle rickshaw) and the prices do not cater to the poor. These modes are for the higher middle class or the more affluent. For example a 5km ride in an auto rickshaw is almost 2 times what 15% people below the poverty line earn per day Between the buses and metros, the buses are more accessible. The distance between each metro station is 1-2kms whereas the distance between bus stations is 500m-1km
  • 57. © 2011 Intellecap. All rights reserved 57 Delhi BRT lane is not of a substantial size to show the benefits to the commuters; negative media hampered its further growth Context: Delhi has a modal share of around 30% for public transport and buses contribute the most to the high modal share. With constantly increasing modal shares of private vehicles such as cars and motorbikes the congestion levels in the city are also rapidly increasing. With this scenario it becomes important to implement a right of way for buses and rightly so the government of Delhi implemented a pilot BRT line of 5.6 Kms from Chirag Delhi to Adarsh Nagar. This system is an open BRT system with the segregated lane provided for all buses (not just for special BRT buses) plying in the route Impact: The Delhi BRT carries on an average 12,000 passengers / hour in a single direction which is high given its size but the average speed of the buses is only 13kmph which is low when compared to most BRTs across the world. Fatalities and the negative media: 15 fatal accidents happened on the BRT lane in its first year of operation and this got a lot of negative media attention. It also became a major campaigning point for the opposition during the Delhi elections. With political pressures and constant media negative reports the BRT project took a back seat and didn‟t expand beyond the 5.6km stretch in Chirag Delhi. Indian Institute of Technology, Delhi professors, (designers of the Delhi BRT) ensured that rights steps such as building speed breakers and implementing effective traffic management systems were taken in the subsequent years which brought the fatalities to zero in recent years The central BRT lane was built to end Bus-cyclist conflict which was the major reason for fatalities earlier before the BRT. Currently the BRT corridor in Delhi also has a separate cycle lane which is world class and the central lane removes the conflict completely. But the central bus lane means that 100% of the passengers using the Bus need to cross certain part of the road with mixed traffic in it and hence providing better pedestrian crossing infrastructure such as over bridges or subways would have been more effective . Some of the transport experts say that the major problem with Delhi BRT is not the crossing area but it is with passengers entering the corridor in non terminal areas ‘BRT is not pedestrian friendly as it is in the middle of the road. If it was on the left people will get out on the left directly on to the walking/cycling path. Currently all people who get out of the bus have to cross the road as it is in the center’ – a bus conductor on the Chirag Delhi BRT
  • 58. © 2011 Intellecap. All rights reserved A comprehensive NMT lane and pedestrian paths make the Delhi pilot BRT corridor an inclusive corridor The comprehensive NMT lane in the BRT corridor has been specially designed for high number of cycle users in Delhi. Currently 1200 cyclists use the lane in peak hours which is second only to Chinese cities. The cycle lane has been designed by keeping the requirements of the cycle rickshaw drivers and it is wide enough to comfortably accommodate the rickshaw. These design elements make the Delhi BRT corridor not only friendly to the bus commuters but also to the NMT users who together constitute to over 44% of modal share in Delhi The ‘Grade A’ pedestrian facilities have set high standards for other BRT corridors in India. Wide and comfortable pedestrian ways have been built on either side of the road in the BRT corridor Accommodating hawkers: The BRT planners have surveyed hawkers and understood their needs before planning the BRT. They have left green spaces on the corridor as legally they cannot provide space for hawkers (because currently there is no mechanism to allocate spaces). In India the policy makers are hostile towards Hawkers. Currently many hawkers use the BRT corridor without actually blocking the pedestrian way 58 With many more corridors planned and feasibility studies completed the Delhi government is unable to start the projects because of the initial negative media attached to the pilot corridor. With the success of the Ahmedabad BRT there might be a positive impact on the Delhi government officials to implement the Delhi BRT in a more optimal scale
  • 59. © 2011 Intellecap. All rights reserved Delhi has a high modal share, 44% of non motorized modes, but the environment is not conducive for commuters 59 55.71 44.29 Motorized Modes Non Motorized Modes 34.67 4.46 5.16Walk Cycle Cycle rickshaw Modal shares of Motorized and non-motorized modes5  Delhi has a very high modal share of non motorized modes. Cycles and cycle rickshaws have a modal share of around 10% while walking has a modal share of 35%  Inadequate infrastructure for pedestrians and cyclists makes it very difficult for commuters, as do blockages such as hawkers and parked cars on pedestrian and cycle ways  Over 66% of all fatal accidents involved a non motorized mode user, around 53% of them were pedestrians25  Very little is being done to improve the infrastructure for NMT users. A 680km stretch of walking and cycling paths have been planned along with the BRT system but its implementation depends on the implementation of BRT. Currently the expansion of BRT network has been stalled because of all the negative media attached to the pilot corridor There are a few organizations that have implemented public bike sharing (PBS) pilots: Delhi Cycles Pvt Ltd. - Metro Cycle Feeder program:  The company has a pilot near the Rohini Metro station  Currently this service helps passengers cover home/office to metro trips or vice versa  This service currently doesn‟t cater to the poor, as most commuters using the metro are people from the middle class or above. With more affluent users using the system it would gather the policy makers attention towards providing better infrastructure for cycling  The fares a quite affordable it costs INR 3 for 15 minutes (assuming most short distance trips take approx. 15mins) Delhi Integrated Multi-Modal Transit Sytem (DIMTS) – Delhi BRT PBS pilot:  DIMTS has implemented a PBS system on the BRT corridor, as the BRT corridor has not yet scaled up to an optimal level the usage of this system is also very low  The cost of hiring a cycle is INR 10 per hour, for the first time the user would need to produce an identity proof and deposit INR 100 to get a card done but later on he can just produce his DIMTS card to hire a cycle  The infrastructure on the BRT lane for cycling is world class (see next slide), if BRT scales up this model would have a huge impact on attracting more citizens to cycle